2. Tally up your income. Once you've calculated expenses, determine how much your guaranteed income (e.g., a pension, annuity or Social Security) and variable income (e.g., part-time work or rental income) will cover. The remainder of your expenses will have to be funded by withdrawals from your investment portfolio.
3. Evaluate your Social Security options. You can start your Social Security benefits anywhere from age 62 to 70, but there are advantages to waiting. The earlier you start, the more your benefits will be reduced based on how many months you receive them before you reach full retirement age. If you wait until your full retirement age, your benefits won't be affected at all, and if you wait until after, your benefits will actually increase.
4. Fund the difference. The amount you withdraw from investments (either income or capital appreciation) should change a bit year to year, depending on how much your expenses and other income sources vary. It should also take into account market fluctuations and inflation adjustments.
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5. Set up a home base. With a variety of income sources, you'll have a mix of cash inflows on your hands. It will be easier to manage these from one "home base" account.
There are two approaches you can take to this. The simplest way is to use a single checking account to handle most, if not all, inflows and outflows.