Retirement income: Funding your flying lifestyle
What does it cost to retire?
Once you've set your primary goals, the next step is to start to identify the costs and determine the right income strategy to support them.
First, consider your spending—both now and in the future—on essentials like living expenses, debt, taxes and health care. And don't forget to account for discretionary spending: travel, hobbies, gifts, fine dining and more. Think about whether you want to leave some of your wealth to loved ones or to a cause you care about so you can factor these into your estate planning as well.
Before you finish assessing your retirement expenses, it’s important to address two key elements that many overlook: inflation and your time horizon. In other words, plan for how long you'll need your wealth to last, so you don't outlive your money.
How can you make your money last?
Your retirement plan may draw income from multiple sources: Social Security, pension benefits and investment portfolios. But to ensure a sustainable retirement strategy, the composition of your portfolio matters.
Many investors instinctively reach for bonds and other lower-volatility assets as retirement approaches, believing they're playing it safe. But over longer time horizons, a globally diversified, equity-weighted portfolio has historically delivered stronger returns with lower volatility than fixed-income alternatives.* When you account for inflation and decades of potential retirement spending, a conservative approach may actually be riskier.
Your withdrawal strategy matters just as much as your mix of stocks, bonds, cash and other securities. Taking too much from your portfolio too early, especially during market downturns, can permanently compromise your financial independence. Discipline here is non-negotiable.
Proactive planning can protect your freedom
Whether you're planning to retire or already have, a personalized strategy built around your goals, your income and your legacy can make all the difference.
Fisher Investments is offering AOPA members two free investment guides to help craft a resilient financial strategy: When to Retire and Building a Lasting Legacy for Your Family. If you have $1 million or more in investable assets, you can also enjoy a no-obligation financial consultation. Claim this exclusive offer today!
*Source: Finaeon, Inc., as of 2/12/2025. Average rate of return from 12/31/1925 through 12/31/2024. Equity return based on Finaeon, Inc.’s World Return Index, Fixed Interest return is based on Finaeon, Inc.’s Global USD Total Return Government Bond Index.
