{"id":43227,"date":"2025-06-25T09:43:03","date_gmt":"2025-06-25T09:43:03","guid":{"rendered":"https:\/\/isafespend.com\/?p=43227"},"modified":"2025-06-25T09:43:03","modified_gmt":"2025-06-25T09:43:03","slug":"4-steps-to-build-a-portfolio-of-lifetime-retirement-income","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=43227","title":{"rendered":"4 Steps To Build A Portfolio Of Lifetime Retirement Income"},"content":{"rendered":"
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If you\u2019re approaching retirement or recently retired, you\u2019ll want to make sure you have enough regular retirement income to enjoy your retirement but also make sure you won\u2019t outlive your money. To do this, you\u2019ll need to shift your mindset from saving for<\/em> retirement to creating financial security in<\/em> retirement.<\/p>\n

Let\u2019s look at four steps to help you build your retirement income portfolio.<\/p>\n

Step 1: Create A Budget And Set Goals<\/h2>\n

You\u2019ll need to know how much retirement income you need to live the life you want in retirement. To do this, you\u2019ll need to develop a budget for your living expenses.<\/p>\n

While you\u2019re preparing your budget, you\u2019ll want to consider how it will change when you retire. Some living expenses typically increase, such as premiums for Medicare and health insurance, and out-of-pocket medical expenses. But some expenses will likely decrease, such as those for commuting, work clothes, and child-rearing if you raised a family.<\/p>\n

You\u2019ll also want to identify your \u201cmust have\u201d living expenses\u2014those basic expenses that you need to survive. Examples of these include costs for housing, insurance, food, utilities, and property taxes. In addition, you should itemize your \u201cnice to have\u201d living expenses, such as the cost of travel, hobbies, and spoiling your grandkids.<\/p>\n

You\u2019ll also want to determine how much retirement income you\u2019ll have coming in that\u2019s guaranteed to be paid to you for the rest of your live, no matter how long you live, and won\u2019t drop if the stock market crashes. Examples of this include pensions (if you have one), Social Security benefits, and income annuities. Your overall goal should be to have enough guaranteed income that you won\u2019t panic when the stock market crashes and sell your stock investments at a low value. One possible goal is to guarantee you have enough to cover your must-have living expenses, or at least come close.<\/p>\n

Once you\u2019ve determined that you have enough guaranteed retirement income, you might feel comfortable generating most of your remaining retirement income with stock market investments that have the potential for growth to help counter inflation.<\/p>\n

Step 2: Maximize Your Social Security Benefits<\/h2>\n

Social Security income is the best source of retirement income for most people, because it offers valuable features:<\/p>\n