Sources of Income

Business Owner

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Installment payments from sale of business

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Stockholder dividends

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

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Consultant, paid a retainer for unspecified assistance to the business

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Consultant, paid per specific project for the business

Self-employed

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Installment payments from sale of business

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Part-time work for the business

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Consultant, paid a retainer for unspecified assistance to the business

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Consultant, paid per specific project for the business

Employee

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Part-time work for former employer

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Consultant, paid retainer for unspecified assistance to former employer

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Consultant, paid per specific project for former employer

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Part-time work with another employer

Social Security

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Primary + Spousal benefit OR

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both Primary, if higher

Retirement Plans

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Company sponsored pension and profit-sharing plans

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Deferred Compensation

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IRAs, Keoghs, other personal retirement plans

Income-Producing Assets

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Bank accounts and brokerage "sweep" accounts (Interest)

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Stocks (Dividends)

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Bonds (Interest)

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Certificates of Deposit (Interest)

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Annuities (Interest only withdrawals)

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Annuities (Monthly annuitized income)

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

Annuities

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Annuitization

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Interest only withdrawals

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

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

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

Cash Value Life Insurance

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Withdrawals from cash values

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Annuitization of cash values

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

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

Certificates of Deposit

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Interest only withdrawals

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Systematic cashing out

Home Converted into Income

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Reverse mortgage

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Rental of home

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

Insurance Benefits

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Disability policies

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

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

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

Systematic Partial Sale of Assets

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Stocks

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Other Assets

Systematic Withdrawals from

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Mutual funds

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

Systematic Cashing Out

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T-bills

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Certificates of Deposit

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Bonds

Supplemental Security Income (SSI)

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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

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Alimony

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

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Royalties and license fees

*may vary from company to company