It’s always a pretty interesting scenario when clients go from the accumulation phase, working and saving, to the distribution phase. The question becomes:
We don’t have a paycheck showing up in our bank account anymore… How are we going to emulate that with the portfolio?
That’s the starting point. The functionality of turning assets into income in retirement.
We call it your portfolio paycheck, and it’s one of the first things we map out when someone approaches retirement.
Here’s how it works.
Mailbox Money
The first, most basic thing people want to understand is functional: How do I get money from my portfolio to my bank account?
We call it your mailbox money or your portfolio paycheck.
Here’s what that looks like:
- Automatic transfers: We set up recurring transfers from your investment portfolio straight into your bank account, just like direct deposit from your employer.
- Income sources: These transfers may come from dividends, interest, or structured portfolio draws.
- Tax withholding: Depending on the account type, we may build in automatic withholding to cover taxes, just like when you were working.
- Schedule and predictability: Whether it’s the 1st or the 15th of each month, the goal is to make it feel normal. Familiar. Stable.
When paired with Social Security, this provides a consistent monthly cash flow, helping replicate the rhythm of your working years.
Designing the Portfolio to Around the Paycheck
From there, it’s about designing the portfolio to support that income.
That usually means a slight shift, tilting toward income-producing assets without overhauling the entire portfolio. The goal is to produce what’s needed in a thoughtful, intentional way.
This stage is where we begin thinking differently about your investment mix:
- Shift toward income: Prioritizing investments that naturally generate income.
- Preserve optionality: It’s not about chasing yield. It’s about designing the portfolio to support the planned draws with minimal disruption.
- Create flexibility: Your needs may change month to month or year to year. Your portfolio should be designed to accommodate those shifts.
This becomes part of what we call your retirement glide path—adjusting the portfolio to align with the way you’ll draw from it.
Planning with Confidence
You’ve gotten a paycheck your whole life. We’re just recreating that. Thoughtfully. Strategically. With intention.
What if structuring your retirement income was really as simple as finding stability? Familiarity. A rhythm that feels like what you’ve always known—just built a little differently now.
We’ve already planned for this. The next step is making sure you feel that way, too.