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In retirement, you’ll need sources of income to fund your lifestyle. Where will those come from?

In retirement, questions about market exposure and the potential for growth are replaced with questions about how you’ll supply yourself with the income you need to support your desired lifestyle. This becomes crucial as you no longer collect paychecks or salary, meaning that you’ll be living on a fixed income for the rest of your life. At this level of importance, it can be helpful to get an early start creating those income streams, so let’s go over a few ways you can do just that.

Social Security

For those who qualify, Social Security is often one of the main sources of income in retirement. Additionally, it can be increased by a certain percentage annually due to inflation or cost-of-living increases as measured by the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers), although increases are not given every year.

There are, however, a few important things to remember about Social Security. First, once you file for Social Security, your benefit is locked in. Some people mistakenly believe they can file at the earliest age of 62 and that their benefit will automatically increase at their full retirement age. But that’s not true. Only by waiting until your full retirement age can you secure 100% of the benefit you qualify for. Furthermore, by delaying past your full retirement age, your benefit can increase roughly 8% each year until you turn 70. We can help you determine a Social Security filing strategy.


Some employers, including some governments or public entities, offer a pension that is typically based on salary and tenure. Usually, employees contribute to a defined benefit plan while working, but it’s important to be aware of the stipulations of any pension plan you may qualify for. For example, some employers will require employees to work at a company for five years to become fully vested, or you may be required to work until 65 to receive your full benefit. You can consult your employer’s human resources to get a better idea of what your pension or other benefits entail.

Retirement Accounts

Retirement saving and investing vehicles like 401(k)s and IRAs can be one of the most effective ways to provide income in retirement based on contributions made during your career. Funds in these accounts are typically linked to the market, and you may be able to choose between traditional and Roth accounts. Traditional accounts provide tax-deferred growth with income taxes paid at the time of withdrawals, while Roth accounts are funded with post-tax dollars so that growth and withdrawals are both tax-free. For traditional accounts, it may be helpful to work with your financial and tax professionals to devise a withdrawal strategy that can mitigate your tax obligation.


Annuities are usually part of a more protection-based approach to retirement, offering a regular stream of income either for life or for a predetermined period of time based on the details of your annuity contract. For fixed or fixed indexed annuities, that contract also typically guarantees a rate of growth and principal protection with guarantees backed by the issuing insurance company’s claims-paying ability. There are hundreds of different annuity products with different guarantees and customizable features, so it can be helpful to speak to your financial advisor to find a solution that suits your needs.

Life Insurance

Life insurance is usually known for the death benefit it offers upon untimely death; however, modern life insurance products may be more versatile. Permanent life insurance policies, such as indexed universal life policies, have a cash value portion that the policyholder contributes to. Then, that cash value portion can grow at a rate guaranteed by the insurance company. It can then be borrowed from tax-free for any reason, including for retirement income. If you are interested in discussing life insurance, we can help!

Rental Properties

If you have a second home, a casita or a rental property, it may be able to generate additional retirement income for you. This can be especially true if those properties are in desirable or high-traffic areas. The main drawback of a rental property is the responsibility of being a landlord. It could force you to deal with difficult tenants, maintenance costs or volatile housing markets.

Part-Time Jobs

Though your career may be over, you don’t have to stop working. You can pick up a part-time job for a little bit of extra income or simply to stay busy. You might even want to work in an area you feel more passionate about, such as a startup or for your own business. Furthermore, consulting work may allow you to utilize the expertise you gained during your career, just without the obligation of a full-time job. You may even find working with fewer strings attached to be a great social outlet.

Private Investments

When investing in private endeavors, you should always exercise extreme caution and consult your financial and investment professionals prior to signing on any dotted lines. That said, they can offer the possibility of generating retirement income while allowing you to help someone you may have a personal connection to. At the same time, it’s important to remember that many private investments are long-term plays, so it may take a significant amount of time to see a return on your investment.

Generating extra streams of income can be extremely helpful in retirement, and we’re prepared to help! If you have any questions about creating income streams or withdrawal strategies, or if you’re ready to schedule an appointment with Terri Lewis at PCIA – Prime Capital Investment Advisors, please contact us at 913-491-6226.



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Terri Lewis, CLU®, ChFC®

Partner, Financial Advisor
Prime Capital Investment Advisors
6201 College Boulevard, Suite #150
Overland Park, KS 66211
Call MK: (913) 491-6226