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When you are saving for retirement in your 50s, you need to have a plan for creating a retirement income stream that will last you for several decades. Ask anyone what their #1 fear is when it comes to saving for retirement, and it’s the fear of running out of money before they die. If someone retires at 65, their income needs to last them for another 30 years. Here are the three ways they can try to do that. First, begin with the end in mind. Whether you are saving for retirement in your 50s or younger, what that means is to keep in mind that creating income is the real goal here. Rather than focusing on how big one’s 401(k) is, people need to concentrate on how big their retirement “paycheck” is. Think about it: The size of your 401(k) really won’t matter if the government can put a cap on it anyways; this is exactly what the White House proposed in January 2015. The President has announced he is putting a cap on 401(k) plans and other tax-qualified retirement accounts. Now more than ever is the time for future retirees to understand how retirement income streams work so that their retirement paycheck can provide them with decades of income. The first step in trying to create a lifelong retirement income stream is to develop a sound accumulation strategy. When you are saving for retirement in your 50s, a good financial advisor will help make sure your retirement account has a suitable balance between accumulation assets such as your 401(k), mutual funds, Roth IRAs, stocks/bonds/precious metals, and investment assets such as real estate or businesses. A great financial advisor can do even more than that, by helping to make sure distribution assets are part of the equation. Distribution assets are designed to work together with your accumulation asset. Make no mistake: They are not just an “option.” If you want your retirement income to last you for a lifetime and maintain your pre-retirement lifestyle, then distribution assets are indispensable. If you haven’t heard of them, it’s because most financial advisors will not tell you about them – but we will. If you are just now saving for retirement in your 50s, or just beginning to save for retirement at any age, one way to help make sure your retirement income will not run out and to maintain your lifestyle is to add distribution assets to your portfolio while you are saving for retirement. Speaking of distribution, the third step to retirement income for life and lifestyle is choosing the proper distribution strategy. Distribution is the percent of income withdrawn from your retirement assets on an annual basis. Understanding how retirement asset react to fluctuating interest rates while at the same time withdrawing income for lifestyle is critical to your long term success. This is generally the biggest mistake retirees make when beginning to distribute income from their hard earned retirement assets. Setting the correct withdrawal or distribution rate is essential to creating the right distribution strategy for your retirement income, which can potentially significantly impact your chances of maintaining your retirement income for life and lifestyle. This is the case whether you are saving for retirement in your 50s, 40s or even 30s. When you start planning for retirement, it is critical to think about it in terms of creating income that will last for decades after you retire. When choosing a financial advisor, choose an advisor who understands the balance needed between accumulation and distribution assets. Choose an advisor who is experienced in understanding retirement income streams. Contact our financial professionals to discuss this; we can be reached at 888-994-6424.