Controlling your cash flow is a smart way to maximize investment income in retirement. Consider these tips:
Maximize Social Security.
While you're free to retire and take Social Security as early as age 62, the longer you delay this benefit, the larger it becomes, until the age of 70. Spouses can also take advantage of a “file and suspend strategy.”
What is File and Suspend?
Under current law, a spouse cannot claim a spousal benefit unless the main beneficiary claims benefits first. However, once Full Retirement Age (FRA) is reached, a beneficiary can file for benefits and immediately suspend receipt of those benefits until a future date. By doing this, the spouse can claim a spousal benefit and the main beneficiary can let his or her own retirement benefit grow at 8% per year. The file and suspend strategy is also potentially useful for couples in which only one person has reached FRA. In this case, the benefit of the main beneficiary will continue to grow, but the spouse's benefit will not.
Use asset location for tax-efficient withdrawals.
If you're like most retirees, your assets are in a variety of accounts. Tapping them in the right sequence could extend the life of your portfolio. You can withdraw from your non-retirement accounts first. The long-term capital gains rate could receive a lower tax rate versus withdrawing from a traditional retirement account, where income is generally taxed at an ordinary income rate. Using a Roth IRA to augment your traditional sources of retirement income may also limit the amount of taxes you pay when you are distributing assets.
Consider time segmentation.
Time segmentation matches your withdrawal types with income needs. In typical time-segmentation plans, cash and conservative investments are used first. As time goes on, assets are moved gradually from aggressive growth accounts into more moderate and then more conservative investments. Assets in more aggressive-growth accounts are put to work early on so these assets have an opportunity to grow.

Plan today. Enjoy tomorrow.
There are many ways to plan for smarter cash flow. Learn more about cash flow strategies in Retirement Insights.