By Ann Schnorrenberg, Ph.D.
After spending most of your adult time working, you have decided to retire. Congratulations!
Retirement is an exciting time but is accompanied by the termination of one steady benefit—a regular paycheck. Your living expenses were covered by that fixed and constant income, but now you are on your own.
How do You Create an Income Stream from Your Savings?
t retirement, everything changes. Not only will you have more free time to focus on what you like, your tax situation is also changing. Wages have ended and taxable income has decreased significantly. Furthermore, you are likely to face higher taxes in the future. The reason for that is that once you reach age 72 you will be required to withdraw funds from your tax-deferred accounts each year. By age 70, if you haven’t already begun drawing Social Security, those benefits will increase your taxable income as well.