Three Ways to Turn Savings into Income

Steve Vernon demonstrates three ways to turn your retirement savings into retirement income. The first – Dividends and Interest – is probably applicable only to the wealthiest of investors (and, even then, there are significant drawbacks to the approach).  The second – Systematic Withdrawals – is probably the most widely used, but does carry greater risk than the first and, possibly, third methods.  The third – Immediate Annuities – probably only makes sense for those of us who come from exceptionally long-lived families and, even then, may be less desirable than building a simple TIPS ladder – especially given the level of annuity default risk that’s likely to exist if the markets are so bad that method #2 (Systematic Withdrawals) doesn’t work. Read the full articles here: Understanding Interest and Dividends in Retirement Planning Understanding How Systematic Withdrawals Affect Retirement Understand How You Can Use Immediate Annuities