Maximizing Income During Retirement

Many Americansare worried about outliving their income during retirement.  Here are a few steps baby boomers shouldimplement to help maximize their post-retirement income: 

1. Continue Working.  Unless your job is too stressful, seek to extend employment aslong as possible.  The last years of workare usually the highest income-earning years and can hopefully be devotedlargely to savings because most of life’s major expenses should be over.  And recent studies say the risk ofdementia drops the longer you work.
2. Delay Social SecurityBenefits.  Payments are permanentlyreduced if you receive them before retirement age.  Delaying benefits until after age 70 makesthe most financial sense.
3. Reduce Investment Risk.  Once you begin to withdraw money from your savingsfor living expenses, it’s time to reduce the investment risk of yoursavings. 
4. Stabilize InvestmentIncome.  To ensure steady income,consider adding master limited partnerships (MLPs) and real estate investmenttrusts (REITs) to your portfolio.

See Mike Lewis, 4 Strategies to Maximize Income DuringRetirement, Forbes, Oct. 28, 2013.