From Paycheck to Portfolio: Adjusting to Living Off Retirement Savings

Do I need to change how I think about money once I retire?

Yes — retirement brings a major shift in how you manage money. You're no longer receiving a steady paycheck. Instead, you're now responsible for turning your savings into income.

As a Portland-based advisor focused on retirement income, I work with people every day who are adjusting to this new reality. It’s normal to feel uncertain at first, but with the right system in place, your retirement income can be just as predictable as your paycheck once was.

Moving From Accumulation to Distribution

During your working years, you focused on saving and growing your nest egg. Now it’s time to use those savings to support your lifestyle.

This shift requires a new mindset:

You’re drawing down instead of building up.
Your investment strategy may need to change.
You’ll need a plan for sustainable withdrawals.

How to Create a Retirement ‘Paycheck’

Think of your retirement income as your new paycheck. Here's how to set it up:

Step 1 – Know Your Income Strategy to Turn Your Savings into Future Income

Decide how you'll convert savings into predictable monthly income.
Consider your comfort level with risk, flexibility, and guarantees.
Match your strategy to your lifestyle phase and RISA income style.

Step 2 – Know Your Sources

Combine predictable sources: Social Security, pension, annuities.
Supplement with withdrawals from IRAs, 401(k)s, and brokerage accounts.

Step 3 – Automate Cash Flow

Set a monthly transfer from your portfolio to your checking account.
Treat this like your old direct deposit to maintain consistency.

Real Example: Building Confidence in Cash Flow

A couple in Portland came to us unsure how to start spending their savings. We:

Showed them how their spending fit within their long-term plan
Used a bucket strategy to protect short-term needs
Set up monthly transfers from their investment account(s)

Now, they feel like they’re “getting paid” in retirement — without the stress.

Use Your RISA to Match Your Style

Every retiree has a different comfort level with risk and flexibility. That’s why we offer the RISA® (Retirement Income Style Awareness) assessment at no cost.

Your RISA can tell you if you prefer:

Income Protection (guaranteed income)
Total Return (market-based)
Time Segmentation (bucket strategy)
Risk Wrap (hybrid approach)

Once you know your style, you can design a retirement income plan that fits you.

Conclusion: Your Savings Can Pay You—Just Like a Paycheck

This is a big transition, but it doesn't have to be scary. With a clear income plan and consistent structure, you can feel confident about your finances in retirement.

Want help turning your savings into income? As a Portland-based retirement income advisor, I’d be happy to walk you through your RISA results and help you build your plan.

FAQs

Q: How do I choose the right income strategy for retirement?

A: Start by understanding your comfort level with risk and how much flexibility you want in your retirement income. The RISA assessment can help clarify whether you prefer predictable income, market-based growth, or a combination.

Q: Should I focus on guaranteed income or investment income in retirement?

A: That depends on your comfort with market risk and how steady you want your income to be. If predictability matters most, guaranteed sources like annuities or pensions might fit. If you’re comfortable with some variability, investment income gives more flexibility and growth potential.

Q: Why is it important to have a strategy before I begin withdrawals?

A: Without a plan, it's easy to either overspend too soon or underspend and miss opportunities. An income strategy gives structure to your financial decisions.