Retirement planning is important to ensure that you have the financial security that you need in life after retirement. If you plan to retire in your 60s, you will need your savings to last almost 30 years after you retire. Social Security benefits will replace only 40 percent of your income that you lose when retiring. This is why it’s important to plan and strategize for retirement. There are a few ways that you can invest your money so that you ensure financial stability during retirement.

Total Return Investments

Your investment portfolio invests in a mix of stocks and bonds that provide income in the form of interest, dividends, and capital gains. Total return investment approach can provide a way for you to your your immediate cash flow needs while you continue to build your future savings. This approach also allows you to utilize a wider range of assets than typical approaches and may be more tax efficient. While generally beneficial, this approach can also have its challenges. There’s no guarantee that these funds will last through retirement, the return may fluctuate from year to year, and assets could run out before your retirement ends.


Annuities are contracts that you enter into with an insurance company with the understanding that you will have the money distributed to you at a later time.  Annuities help ensure that you have a predicable and steady source of income throughout retirement, allow for flexibility in saving or receiving money, and potentially continue payments for beneficiaries after you’re gone. Unfortunately, challenges with annuities are possible limited liquidity, withdrawals prior to 60 years old may have a 10 percent tax penalty, and your risks could be higher depending on the insurance company.

Real Estate Investment Trusts

Owning and managing real estate is a great way for retirees to generate income, however, a more practical option is real estate investment trusts. This investment option provides a consistent income for a potentially long-term strategy. It’s easy to buy and sell on the open market and has a variety of opportunities to choose from. These investments have the challenges of day-to-day price fluctuations and higher tax rates than other investments.

There are other investment opportunities to help supplements your retirement income and building your portfolio can be stressful. At Master Plan Tax Solutions, we advise on all 401k, 403b, and other outside accounts to help you build your custom investment portfolio. We are fee-only firm with no products to sell. However, we have no account minimum and can work with all people. Our team will do the research, implementation, and rebalancing for you. Call us today to start planning for your retirement and making the most of your income.

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