fbpx

How to Boost Your Retirement Income: 4 Reliable Income Sources to Take Advantage Of

Get Started

What Our Clients Are Saying

Tumwater has given me a place to have my money managed, to allow the money to work for us, thereby increasing in value every day. Tumwater invests the money into funds that grow, watches those funds to stay [diversified]. You hire a Financial Advisor to focus on increasing the value of your saved money. This allows you to focus on your own profession to succeed. The money invested then grows and is there for life’s big bills, college for youngsters, retirement, etc.

Paul M, 6/17/2021 

Read Disclosure here.

[I] sleep well at night knowing Ben and his team are taking care of our investments.

Kealy B, 6/16/2021 

Read Disclosure here.

The service provided by Tumwater has met all of my needs.

Jack C, 6/17/2021 

Read Disclosure here.

I have complete trust in Tumwater, they alleviate a huge burden of stress in my life.

Jenni Y, 6/17/2021 

Read Disclosure here.

Through Ben’s guidance for over 10 years he has us brought to a comfortable financial position heading into retirement.

Nic C, 6/16/2021 

Read Disclosure here.

Tumwater provides a thorough explanation of my assets and how best to meet my needs.

Ruth M, 6/17/2021 

Read Disclosure here.

Tumwater has been a great resource for financial planning for my future and eventually my retirement. I’ve worked with Ben to find the right balance of investments that suit my long-term saving goals. I also have appreciated Ben’s help with other savings goals, whether it’s regarding an emergency savings fund, or saving for a specific purchase. He is always willing to answer my questions and explain the rationale behind investment moves. He also reviewed my 401(k) plan which was very helpful!

Brooke W, 6/16/2021 

Read Disclosure here.

Tumwater allows us to enjoy our retirement.

Paul M, 6/17/2021 

Read Disclosure here.

You have been a valuable resource for others in our family. You have gained our trust and respect and this is very important at our stage in life!

Cherie and Jim C, 6/17/2021 

Read Disclosure here.

Tumwater has helped my family think about our financial future– but in a uniquely holistic way.
I really value being able to ask for Ben’s advice on any financial topic, be it immediately related to our investment planning or not.
Ben sees and understands how the big picture impacts the tactical decisions he helps you make.

Matthew M, 6/17/2021 
Read Disclosure here.

They have helped me feel safe with my financial future and provided me a valuable resource to come to with any questions about financial decisions and planning.

Jack C, 6/17/2021 

Read Disclosure here.

I find the entire staff consistently responsive. This is significant for me. Once I recognize I need information, it is helpful to receive that information quickly.

Jenni Y, 6/17/2021 

Read Disclosure here.

Tumwater has helped to make us feel financially secure over the long run because of the sensible investment strategies Ben has employed for us.

Cherie and Jim C, 6/17/2021

Read Disclosure here.

We have 100% confidence that you know what you are doing which is so much more that most professionals who call themselves a financial advisor.

Kealy B, 6/16/2021 

Read Disclosure here.

My first contact with Ben occurred when he was the Financial Advisor for my former employer… The first one-on-one meeting we held to discuss my financial future
was a total wakeup call (Yes, there were tears). He laid out an honest appraisal of my current financial situation and what I needed to do differently to move positively
toward a reasonably comfortable retirement. I took his sound advice to heart. Last year, I was unexpectedly laid off and that led to my decision to retire at the age of 70. I reached out to Ben and he immediately set up a time to talk about the best options for my 401K. A plan to roll the funds into an IRA was set in place and implemented by Ben and his co worker, Jackson. I am confident that Ben has my best interest at heart.
Communication is never an issue—I always know I will receive honest, appropriate guidance.

Patricia A, 6/17/2021 

Read Disclosure here.

How to Boost Your Retirement Income: 4 Reliable Income Sources to Take Advantage Of

Posted on:
November 11, 2021
Time to read:
3 minutes

With Americans often living for decades after retirement, it’s important to know how to boost your retirement income. Through a combination of reliable income sources, maximal savings, and a financial advisor to help you develop a solid financial plan, you’ll have a more financially secure retirement during your golden years (and beyond). Even if your financial situation is less than ideal, it’s never too late to make positive changes.

4 Reliable Retirement Income Sources

While an experienced financial advisor can offer suggestions about what’s best for you based on your unique situation, needs, and comfort level, these 4 investment categories, historically, have been the most reliable retirement income sources.

1. Bonds

Bonds are less likely to lose money than stocks are, and they pay interest regularly. They can provide a steady stream of income that can help offset your losses during stock declines. In addition, some bonds provide tax-free income, but these generally pay lower yields. They’re often appropriate for retirees who are in a higher tax bracket. Following the investment strategy of laddering (buying bonds so they mature at different times) can be a good strategy.

2. Stocks that Pay Dividends

Stocks that pay dividends will often provide more money than investments like certificates of deposit (CDs). And although there’s risk in owning stocks, dividends can help you make money when the stock rises, as well as through the dividend itself. Some large companies, such as Procter & Gamble, have committed to raising their dividends each year and have done so for decades, even when the economy has taken significant downturns.

3. Roth IRA

Unlike a traditional IRA (individual retirement account), a Roth IRA is funded with money that you’ve already paid taxes on, and contributions to this type of account aren’t tax deductible. The money you withdraw from your account is tax free, which can come in handy during retirement, especially if you’re in a high tax bracket. Currently, individuals ages 50 and up can contribute up to $7,000 a year to a Roth IRA, as long as income is under $140,000 for singles and $208,000 for couples.

4. Social Security Benefits

Social Security benefits typically replace about 40 percent of pre-retirement income. Although this is a great help to most older Americans, it can’t be expected to provide for a secure retirement on its own. That’s why it’s so important to plan for other reliable sources of income.

How to Increase Your Retirement Income

If you’re wondering how to boost your retirement income, here are a few tips:

1. Work Until Your Full Retirement Age.

Your full retirement age is the age at which you can receive full Social Security benefits. This age varies depending on the year in which you were born. Your full retirement age is 66 if you were born between 1943-1954, and 67 if you were born in 1967 or later. Working beyond your full retirement age may also raise your benefits since they’re calculated based on your average wages over your 35 highest-earning years, after adjusting for inflation

2. Make Catch-Up Contributions If You’re Eligible.

You may be able to make catch-up contributions to an IRA, 401k plan, or certain other types of investments. This is available to investors ages 50 and older to let them catch up on contributions they may have missed during their career.

3. Contribute to a Health Savings Account.

Health savings accounts (not to be confused with health flexible spending accounts) can help you generate tax-free income in retirement, and contributions you make to the account are tax deductible. Withdrawals you use to pay for qualified medical expenses are also tax- and penalty-free before age 65. After age 65, you can withdraw the money and use it for anything without having to pay taxes or penalties.

Are You Getting the Financial Advice You Need?

Even if you already feel like an experienced money manager, you can still benefit from the professional guidance of a financial advisor. Our team at Tumwater will help you navigate your way through the many important financial decisions you’ll make throughout your life that will affect your retirement savings and income. We keep you on the right track ensuring you make the right financial decisions at the right time.

To learn more about how to boost your retirement income, download a free copy of our eBook, “How to Retire with Confidence and Clarity” and start planning your retirement by signing up for our Retirement Income Academy course!

Disclosure:

Tumwater Wealth Management is a registered investment adviser and may only conduct business in states where it is registered or exempt. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

Build a Retirement Income Plan that Gives You Confidence and Freedom

Sign up for our Retirement Income Planning Course.

Learn more