Planning for retirement can be tricky! Imagine you have $1.5 million saved. How can you make that money last throughout your retirement years? There are several ways to get income from your savings.
- Cash: Keep your money in a savings account or CD (like a special savings account). It's safe, but your money might only grow a little.
- Bonds & Dividends: Invest in bonds (like IOUs from companies) and dividend-paying stocks (companies share their profits). This gives you regular payments.
- Annuity: Buy a contract from an insurance company that gives you a set amount of money each month for life. It's like a guaranteed pension.
- Mixed Assets: A mix of stocks and bonds to balance safety and potential growth. You'd sell some investments to get money.
| Method | Yearly Income (Estimate) |
|---|---|
| Cash (4% withdrawal) | $60,000 |
| Bonds & Dividends | $67,500 |
| Annuity | $96,000 |
