How to diversify your income

Published 6:55 pm Friday, January 15, 2016

By: Stephen P. Poitevint

There are many factors to consider when it comes to planning for a secure and fulfilling retirement – from how you’ll fill your time to where you’ll live and how you’ll pay for it all. One solution is diversifying your retirement income.

Similar to asset allocation among your investments, this approach advocates establishing independent streams of income that could provide needed cash flow under a variety of circumstances. The big idea is to put your eggs in several baskets since none of us know what the markets will do over 20 to 30 years of retirement, much less how long we’ll need our money to last.

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What streams of reliable retirement income will serve as your main source of cash flow? Keep in mind that essential retirement needs and expenses will be different for every retiree and can include mortgage payments, groceries, utilities, insurance, transportation and healthcare.



If your needs aren’t quite covered by your main sources of income, you may have to turn to other income to fill the gaps. If your needs are covered, you can use the extra bounty to pay for the good stuff – the wants and wishes that reflect your personal vision of an ideal retirement.



After you start making withdrawals, you may wonder if you have enough planned retirement income to cover both your needs and wants. We can help you uncover forgotten assets, such as an old 401(k) or inheritance.

We stand ready to help you determine how more reliable income sources will perform in “normal” markets, recessions or periods of high inflation. By analyzing each source, we can help you gain confidence in the ability of each to withstand a long haul. If you’re not sure you’ll have enough, let’s look at all the pieces that make up your net worth for a plan to help get you closer to your retirement goals and help ensure we’re optimizing the most tax-efficient way to draw from your accounts.



Reliable income sources to cover necessary expenses

• Social Security benefits

• Pension payments

• Employment income

• Annuity payouts



Assets specifically set aside to fund retirement and supplement reliable income

• Employer-sponsored 401(k)s

• IRAs

• Checking and savings accounts

• CDs

• Dividends and interest from investment accounts



Forgotten assets and creative ways to diversify further

• Profits from selling a business

• Cash value life insurance

• Part-time work

• Additional fixed income investments

• High-quality dividend payers


The key elements for a long, and hopefully prosperous, retirement – reliable income, retirement assets, needs and wants – work together to create a clearer understanding

of your financial picture and the income sources that will be used to cover retirement expenses. Let’s talk about how to best structure your assets in a way that manages risks, diversifies your investments as well as your income, and seeks to provide a reliable retirement paycheck. One that has a greater chance of lasting as long as your retirement will.

Investing involves risk including the possible loss of principal. Past performance may not be indicative of future results. Asset allocation and diversification do not guarantee a profit nor protect against loss. Dividends are not guaranteed and may fluctuate.

This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material.

This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal.

Stephen P. Poitevint is a Registered Principal and Financial Advisor of Raymond James Financial Services, Inc., member FINRA/SIPC, and is located at 908 Tallahassee Highway, Bainbridge, Georgia, and can be contacted at (229) 246-7208 or