A Publication of WTVP

Today’s low interest rates are great for those who want to borrow money, but they’re tough on investors who rely on cash flow from their portfolios. With rates on money market funds and certificates of deposit at 40-year lows, many have trouble finding relatively low-risk investment vehicles that can deliver income on which they can live.

An alternative would be for them to augment the lower returns by drawing on their capital. But doing so exposes a 60-year-old retiree to the danger that the money will disappear before the retiree does. As Ernie Ankrim, chief portfolio strategist at Russell Investment Group, puts it, “At that age, you have to invest knowing that you could have another 25 to 30 years to live. After all, it’s better to have money left over when you die than to run out of money while you are still alive.”

What to do, then?

Here are five steps you can take to try to boost your income in retirement.

Nothing is certain, but take these steps and you stand a better chance of beating inflation and having enough to live on for the rest of your life. IBI