Question: How do you create sustainable retirement income in a low interest environment?
Answer: Low interest rates have plagued conservative investors and savers for years. Investing for income in retirement has continued to become even more challenging. My advice for clients is to focus on cash flow, tax management and diversification. Retirees need to allow themselves time for their portfolios to adjust to abnormally low interest rates. With an open architecture for investments, we often start with a review or at least a consideration of municipal bonds, real estate investment trusts, master limited partnerships, dividend yielding stocks and fixed income that is weighted toward credit. One size does not fil all, so custom tailoring is required. It is true that each of these investments present a different kind of risk that may very well disturb clients sensitive to volatility. However they also present the possibility of greater benefits of tax advantages, diversification or higher income. Investors in retirement should also plan for living longer. Life expectancy of people who have benefited from advances in health care could have significantly longer retirements. Investing in equities can potentially provide a hedge against inflation that will be greatly appreciated in those later years. In short if you need additional yield and tax management please do not hesitate to give our office a call at 910-239-9130.
Scott A. Winslow, ChFC is an investment advisor representative with over 20 years’ experience having practiced in Wilmington area since 2001. His practice focuses on retirement income planning, tax management, and advanced wealth management techniques.
Scott A. Winslow, ChFC
Nabell Winslow Investments
Securities and Advisory Services offered through Cetera Advisors LLC, member FINRA, SIPC. Cetera is under separate ownership from any other named entity.
Investments in securities do not offer a fix rate of return. Principal, yield, and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results.