Strategies To Generate Retirement Income And Secure Your Future

by | Mar 29, 2023

Retirement planning is essential to building financial security and ensuring a comfortable lifestyle during your golden years.

But for many people, the prospect of retirement can seem daunting—and it’s easy to start procrastinating.

However, it’s important to have a retirement strategy now to ensure you will be financially relaxed during your retirement years.

This blog post will give you strategies to generate income and insight into potential sources of retirement income strategies so you can build up your assets and secure a strong financial foundation for when the time comes!

 Income Annuities

An income annuity is a contract between yourself and an insurance provider in which you make a one-time lump sum payment.

That money is then given back to you regularly through periodic payments.

Annuities are beneficial as they enable you to secure a steady income for a designated period or throughout your life.

You pay a specific premium to an insurance company with the assurance that the money will be distributed to you at some point in the future.

During this time, the insurer keeps your funds safe and secure and can grow tax-deferred without being subject to taxation until you receive it.

When you withdraw mutual funds, you can select a steady income or increase the payments to account for inflation.

Furthermore, you can decide whether this payment will last only throughout your lifetime or if it should extend across your and another’s lifespan (for example, a partner’s).

By making this choice, you can ensure that your finances remain secure in the long term.

Annuities can benefit retirees, providing safety, long-term growth, and income for a portion of retirement savings.

Retirees often turn to annuities to supplement the other reliable sources of income available, allowing them to offset any ongoing costs or expenses they must still pay despite entering retirement.

This way, annuities can form an integral part of a comprehensive retirement plan.

Since they provide a source of income guaranteed to last for the rest of your life, annuities are often used as insurance against outliving one’s retirement savings.

Total Return Investment Approach

A total return approach to investing provides an income stream from your portfolio through a combination of interest, dividends, and capital gains.

This approach involves diversifying and balancing your investments between stock and bond funds to maximize returns while reducing risk.

The goal is to generate a consistent flow of income over time that can provide you with financial security.

In this context, “total” return refers to the combination of income and appreciation over a longer period (10-20 years) rather than merely focusing on specific annual return rates or solely relying on portfolio income.

This total rate of returns should be spent as part of an average annual rate to maximize growth potential over the lengthier period.

Building a retirement income strategy ensures the total return meets or surpasses one’s withdrawal rate.

Rob Haworth, senior investment strategy director at U.S. Bank, explains that this approach is designed with long-term retirees in mind, those who may be retired for over 20 to 30 years or more.

It could provide an opportunity to produce a higher overall return in your retirement account than the investment portfolio typically followed in retirement.

This approach might allow you to outperform traditional investing methods during your golden years.

Concerning withdrawal rate, a total return approach entails employing a “systematic withdrawal” tactic in which you regularly draw out a certain share of your investment annually.

This percentage typically hovers between 3 and 5% of the total portfolio’s value.

 Publicly-Traded Real Estate Investment Trusts (REITs)

Retiring individuals are often attracted to investing in real estate to generate income.

Due to its relatively high returns, purchasing and managing rental properties may be an appealing option for some.

However, for most retirees, investing in Real Estate Investment Trusts (REITs) is a more practical course of action.

REITs allow retirees to invest in real estate without taking on direct property ownership and management responsibility.

This investment vehicle can be likened to a comingled fund in some respects; however, instead of holding securities, it invests its capital into revenue-producing real estate properties.

This allows the investor to generate income from their investments and capitalize on the potential of appreciating the property’s value over time.

Publicly traded Real Estate Investment Trusts (REITs) are listed on major stock exchanges such as the NYSE and Nasdaq so that you can purchase and sell this type of REIT like any other stock.

These securities prices constantly fluctuate daily, depending on market conditions.

Consequently, investors can capitalize on changing trends to maximize their returns.

The price of Real Estate Investment Trusts (REITs) can be highly variable and unpredictable, something investors must consider when evaluating potential investments.

According to Haworth, it is not only the intrinsic value of the underlying assets in a REIT that affects its market price; many other factors can cause REIT prices to fluctuate significantly.

Therefore, when investing in REITs, investors should be aware of this volatility and factor it into their decisions.

Income-Producing Equities

People primarily invest in stocks to generate a return through capital appreciation.

However, some equities can also provide investors with income via dividend payments.

Publicly-traded companies often distribute part of their profits to shareholders by paying out dividends which can add revenue to the investor’s portfolio.

Not all stocks pay dividends, and of those that do, certain stocks have been observed to provide higher dividend payments than others generally.

This has become increasingly attractive in the current economic climate, with extremely low-interest rates in the bond market, as explained by Haworth.

Consequently, stock dividends are becoming an increasingly appealing investment option for many investors.

Investing in stocks can be an effective and profitable way of diversifying your income streams and generating higher, competitive yields.

Many companies pay dividends regularly, typically every quarter.

By investing their money in the stock market, investors have the potential to receive cash payments that may exceed those of other investments.

Occasionally, companies may even in special dividends” due to unique circumstances.

However, these are quite rare and should not be relied upon as a steady income source for most bonds; stock dividends can vary significantly with each payment period.

This means there is a degree of unpredictability associated with dividend payments, and investors should be aware of this before making any decisions.

In addition to the volatility of dividend payouts, investors must consider other factors, such as the company’s financial performance and overall market conditions, when investing in stocks offering dividends.

 Non-Traded Real Estate Investment Trusts (REITs)

A non-traded Real Estate Investment Trust (REIT) is a form of real estate investment that enables investors to “pool” their money market funds together to invest in a professionally managed commercial real estate portfolio.

This type of REIT is considered a non-liquid asset, meaning it cannot be easily converted into cash.

It typically requires investors to hold the trust for its term until the management team liquidates it.

Although this type of investment does not offer liquidity, it can provide an excellent return on investment if held long enough.

Use These Strategies To Generate Retirement Income

Overall, planning for retirement can often feel overwhelming, but there are strategies that you can use to secure your future.

By following the guidelines discussed in this blog post, such as developing a budget and saving regularly, you can ensure a secure financial plan even after retirement.

Additionally, exploring options like income annuities or a total return investment approach can help further support your future retirement needs.

Furthermore, it’s important to remember that financial planning varies from individual to individual, and staying informed is key.

Finally, consult with a professional financial advisor to determine what methods are best tailored to your situation.

With the proper knowledge and information at your disposal, you can confidently embark on the journey of planning for retirement with peace of mind!


  • Scott Hall

    Scott realized about 5 years ago that he was woefully behind on retirement savings and needed to catch up. He began writing about it on

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