Sources of Income

Exploring the Options after Retirement

Business Owner

Installment payments from sale of business

Stockholder dividends

Part-time work, perhaps as a member of the board of directors

Consultant, paid a retainer for unspecified assistance to the business

Consultant, paid per specific project for the business

 
 

Self-employed

Installment payments from sale of business

Part-time work for the business

Consultant, paid a retainer for unspecified assistance to the business

Consultant, paid per specific project for the business

 
 

Employee

Part-time work for former employer

Consultant, paid retainer for unspecified assistance to former employer

Consultant, paid per specific project for former employer

Part-time work with another employer

 
 

Social Security

Primary + Spousal benefit OR

both Primary, if higher

 
 

Retirement Plans

Company sponsored pension and profit-sharing plans

Deferred Compensation

IRAs, Keoghs, other personal retirement plans

 
 

Income-Producing Assets

Bank accounts and brokerage "sweep" accounts (Interest)

Stocks (Dividends)

Bonds (Interest)

Certificates of Deposit (Interest)

Annuities (Interest only withdrawals)

Annuities (Monthly annuitized income)

Other Income–Producing Assets (real estate, etc.)

 
 

Annuities

Annuitization

Interest only withdrawals

Withdrawal of 10% or less of principal per year avoids surrender charges*

Withdrawal of 10% or less of principal per year + interest earnings also avoids surrender charges*

Penalty-free withdrawal of principal under long-term care waivers (also nursing home and home health care waivers)

 
 

Cash Value Life Insurance

Withdrawals from cash values

Annuitization of cash values

If healthy, replace old policy with new one (term life insurance?) with lower death benefit

Terminate unneeded cash value life insurance policies; invest proceeds in income-producing assets

 
 

Certificates of Deposit

Interest only withdrawals

Systematic cashing out

 
 

Home Converted into Income

Reverse mortgage

Rental of home

Sale of home, with proceeds invested in income-producing assets

 
 

Insurance Benefits

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Disability policies

Long-term care policies (also nursing home and home health care policies)

Accelerated benefit payments for terminal illness and/or long-term care needs (also nursing home and home health care)*

Critical Illness policies (lump sum payouts to invest in income-producing assets)

 
 

Systematic Partial Sale of Assets

Stocks

Other Assets

 
 

Systematic Withdrawals from

Mutual funds

Annuities (Withdrawal of 10% or less of principal per year avoids surrender charges)

 
 

Systematic Cashing Out

T-bills

Certificates of Deposit

Bonds

 
 

Supplemental Security Income (SSI)

A federal income supplement program designed to help aged, blind, and disabled people, who have little or no income; it provides cash to meet basic needs for food, clothing, and shelter.

 
 

Other Sources of Income

Alimony

Court settlements (typically lump-sum to invest in income-producing assets)

Royalties and license fees

 
 

*may vary from company to company