To create cash flow, you need to implement retirement income planning alongside saving for retirement, although they require distinctly different mindsets and strategies. Perhaps the most popular retirement income strategy financial advisors use to accomplish this goal is the systematic withdrawal approach. The systematic withdrawal approach to generating retirement income is both complex and simple at the same time. However, its critics often miss that it wasn’t designed to create a retirement income plan, but to show the possibilities for generating income in retirement. While financial advisors favor the systematic withdrawal approach – 75 percent of financial advisors said they always or frequently used the systematic withdrawal approach in a survey published in the Journal of Financial Planning – it’s not right for everyone.

Source: Forbes April 23, 2019 13:30 UTC