Deciding what assets to use for income can be crucial in retirement. Most retirees become more conservative, so it may be time to convert higher risk assets into income through conservative balanced income funds or bonds. You could also consider Qualified Longevity Annuity Contracts (QLACs) that defer a portion of your required minimum distributions to age 85. QLACs use a deferred income annuity. Many advisers are now using deferred income annuities to buy blocks of guaranteed income in a laddering strategy where income is triggered at different times like ages 75, 80 and 85. The level of comfort you have with making investment decisions is a major consideration in deciding among the various payout alternatives. If you’ve been
investing successfully for
years, the prospect of
building a portfolio you
control with a lump sum
payout or an IRA rollover
can be appealing—and
realistic. Your challenge
will be producing enough
income during retirement. But if you don’t want to worry about outliving your assets, you may opt for the relative security of an annuity. Knowing that the same amount is coming in on a regular basis makes budgeting—and occasionally splurging—a lot easier. Another approach is to leave your account in your employer’s plan and take distributions on a schedule that   Read more…