Retirement Financial Strategy

• Social Security Income: $2,500 per month
• Available Cash: $200,000
• Healthcare: Medicare A & B, Supplemental insurance, Dental coverage
• Health Status: Good

Keep 6-12 months of expenses in high-yield savings accounts or CDs. If monthly expenses are around $3,000-4,000:

• Set aside: $20,000-40,000 for emergencies
• Remaining for investment: $160,000-180,000

Balanced investment approach with remaining funds:

• Treasury I-Bonds or TIPS
• Protection against inflation
• Government-backed security

• High-grade corporate or municipal bond funds
• Steady income generation
• Lower risk investment

• Dividend-focused stock funds or ETFs
• Growth potential with income
• Long-term appreciation

• Real estate investment trusts
• Real estate exposure
• Regular dividend payments

Conservative 3-4% annual withdrawal rate:

• Annual withdrawal: $4,800-7,200
• Monthly supplement: $400-600
• Helps preserve principal while providing additional income

• Healthcare costs well-covered (major advantage)
• Consider Roth IRA conversion ladder if applicable
• Annual strategy review and adjustments needed
• Consider fee-only financial advisor consultation
• Combination of guaranteed Social Security + conservative investment returns provides security

The strategy should provide financial security throughout retirement, leveraging:

• Guaranteed Social Security income base
• Conservative investment returns
• Comprehensive healthcare coverage
• Good health status