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The Right Income Plan for Your Retirement
Content developed by CUNA Brokerage Services, provided by Dwight Lee & Jason Persinger

For many Americans, their retirement plan is primarily focused on saving and growing as much income as possible by the time they retire. Ask them about their plans once they retire and you will hear dreams of travel, family, or their "next" career. However, you seldom hear about their retirement income plan.

Retirement can last 30 years or longer. To make sure that you have a comfortable income for the length of your retirement, it is important to build a retirement income plan that will allow you to turn your many years of savings into a reliable and sustainable retirement paycheck.

Is there a blanket strategy that will work for everyone? Not anymore. Today, a good retirement income strategy is more likely to be a quilt made up of different elements that are based on your individual needs, goals, and resources. Let's look at some of the factors you should take into consideration as you build your retirement income plan:

Choose the Right Age to Start Taking Your Social Security Income
Social Security represents a significant portion of many retirees' incomes. As a result, it is important to ensure that you are maximizing your Social Security benefit by choosing the right age to start your benefits. For those born between 1943 -1954, the age when you can receive your full social security benefit is 66. However, you can begin your Social Security payments earlier or later than age 66. The choice is yours. Either choice will have a noticeable impact on your income today and in the future. The decision to start receiving Social Security income is a personal one based on employment, health, and income needs.

Diversify Your Taxes
A quick look at your retirement savings and you may see accounts and investments with different tax statuses. The three most common tax treatments are; taxable, tax deferred and tax free accounts. Since tax laws and rates are likely to change during retirement, it can be prudent to establish multiple retirement income sources with varied tax treatments. This approach gives you and your family the flexibility to work with your Financial and Tax Advisors to find ways to optimize your income choices and minimize your taxes as tax laws change.

Determine a Realistic Withdrawal Rate
One of the key questions that you need to ask yourself is "How much can I take from my retirement accounts?" As a general rule, you can withdraw 3% to 5% every year without undue concerns about running out of money.* When making your retirement income plans, make sure that your calculations do not stray too far from this useful rule of thumb.

Take Advantage of New Resources
As millions of baby boomers begin to enter retirement, there are more resources than ever before to help you build your retirement income plan. Every year there are new investment products to consider and new income planning tools to use. To better understand and evaluate these resources, contact your Financial Advisor. Together, you can develop a retirement income strategy that can support all of your retirement goals and dreams.

Dwight Lee and Jason Persinger are Financial Advisors with MEMBER Financial Services located at NuVision Federal Credit Union. If you have any questions, or would like to provide feedback, regarding the information presented in this article, you may contact Zack Seitz at 714.375.8151 or

*Source: Bureau of Labor Statistics by the U.S. Census Bureau, 2008 Consumer Expenditure Survey. Based on a 30-year retirement.

Representative is not a tax advisor or legal expert. For information regarding specific tax situations, please contact a tax professional. For legal advice, consult an attorney.

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. FR061004-8408

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