Best Retirement Income Strategy – New Mexico

Best Retirement Income Strategy – New Mexico

How to Create a Reliable Income Stream from Your Assets

One of the most common questions we hear from individuals nearing retirement is, “How can I turn my savings into a steady income stream?” Whether you’re approaching retirement or simply seeking financial independence, creating a reliable income from your assets is essential for peace of mind and long-term financial stability.

Here’s a step-by-step approach to help you build a dependable income stream from your assets:

1. Know Your Numbers

Before anything else, you need to get clear on:

• Your expenses: Include both essential and discretionary spending.
• Your current assets: Retirement accounts (401(k), IRA), savings, investments, real estate, etc.
• Other income sources: Social Security, pensions, rental income, or part-time work.

2. Segment Your Assets by Time Horizon

Organize your portfolio into “buckets” based on when you’ll need the money:

• Short-term (0-3 years): Keep this in cash, money markets, or short-term CDs.
• Mid-term (3-10 years): Conservative investments like annuities or dividend-paying stocks.
• Long-term (10+ years): Growth-focused investments such as equities or real estate.

This helps manage risk while ensuring liquidity and growth.

3. Consider a Retirement Income Plan

Instead of just drawing down assets at random, build a strategic income plan:

• Systematic withdrawals: Withdraw a fixed percentage annually (e.g., 4% rule).
• Dividend income: Invest in high-quality dividend-paying stocks or funds.
• Annuities: Create guaranteed income for life or a set period.

4. Think About Relocating to Lower-Cost Areas

Where you live impacts how far your money goes. Consider relocating to:

• States with no income tax: Florida, Texas, Tennessee, and others.
• Cities with lower housing, utility, and healthcare costs.
• Communities tailored to retirees or remote workers with affordability in mind.

A move could significantly reduce your monthly expenses, making your income stream go much further.

5. Factor in Inflation and Healthcare Costs

Inflation and unpredictable medical expenses can erode your income over time. Plan for:

• Rising costs: Adjust withdrawals or investments annually to keep pace.
• Health care planning: Consider long-term care insurance or set aside a separate health fund.

6. Tax-Efficient Withdrawal Strategy

The order you withdraw from accounts matters. A smart strategy might look like:

• Taxable accounts first (brokerage)
• Then tax-deferred accounts (IRA, 401(k))
• Finally, tax-free accounts (Roth IRA)

This can help minimize taxes and extend the life of your portfolio.

7. Review and Adjust Annually

A reliable income stream isn’t “set it and forget it.” Life changes. Markets shift. Meet with a fiduciary advisor each year to:

• Rebalance your portfolio
• Review expenses
• Adjust income needs
• Account for unexpected changes

Creating a reliable income stream from your assets requires a balance between safety and growth. It’s not about chasing returns—it’s about creating a sustainable lifestyle. With a strategic, personalized plan—and potentially a new zip code—you can enjoy retirement with confidence and security.

Need help building your income plan or considering a move? Best Retirement Income Strategy – New Mexico

At Mintco Financial, we specialize in personalized income strategies and can help you evaluate whether relocating might improve your financial future. Contact us today for a complimentary consultation.