4 ways to transition into retirement

Consider other sources of income
Consider other sources of income © bikeriderlondon/

Social Security is just one piece of the retirement income puzzle; other considerations include any pensions, retirement accounts and your house as potential income sources.

"Do I work part time? Do I draw out of retirement accounts? In what sequence and how much?" Masiello says.

Here's another thing to think about: How secure does your income need to be? For instance, if the bulk of your money is in retirement accounts, investment planning will be crucial for a smooth transition into retirement.

"If you put it in stocks and draw money out of it, you're bearing risk. If you can cut your spending, you're cutting your risk. If the market really goes down, what will you lose: Your house? Your insurance?" asks Sass. "That can help determine your asset allocation."

Of course, you do also have to invest with the idea that you may live 20, 30 or 40 more years. Investing for growth generally requires that you assume more risk.

There are so many permutations; the ideal scenario will be different for everyone. Start early, plan hard.


Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
30 year fixed 4.23%  0.04 4.19%
15 year fixed 3.26%  0.01 3.27%
5/1 ARM 3.70%  0.32 3.38%
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.29% --0.00 4.29%
50K FICO-based HELOC 4.04% --0.00 4.04%
100K FICO-based HELOC 3.89% --0.00 3.89%
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.79% --0.00 2.79%
48 month used car loan 2.99%  0.01 2.98%
60 month new car loan 3.24% --0.00 3.24%
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.97%  0.02 0.95%
2 Year CD 1.16%  0.01 1.15%
5 Year CD 1.71%  0.04 1.75%
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.75%  0.02 15.77%
Cash Back Cards 16.45%  0.03 16.48%
Low Interest Cards 10.96% --0.00 10.96%

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.


Jennie Phipps

Prepare to be a caregiver

Here are five financial steps you need to take to get ready to be a caregiver.  ... Read more

Partner Center

Connect with us