For most of your working life, income is fairly simple: you work, a paycheck appears, and the bank account breathes a small sigh of relief. Retirement changes that. Suddenly, instead of one employer sending money every couple of weeks, your “paycheck” may need to come from Social Security, IRAs, 401(k)s, brokerage accounts, cash reserves, pensions, or other sources. Congratulations—you have been promoted to payroll department. The benefits are questionable, but the commute is excellent.

That is why the question “how to create retirement income” is one of the biggest questions pre-retirees ask. The goal is not simply to pull money out whenever you need it. The goal is to build a retirement income strategy that turns your investments into a dependable retirement paycheck while still managing taxes, market risk, and long-term flexibility.

A good retirement withdrawal income plan starts with your spending. How much do you need each month for the basics? How much do you want for travel, giving, hobbies, grandkids, or the occasional purchase that somehow starts as “just looking”? Once you know the amount your lifestyle requires, you can compare it to your reliable income sources: Social Security, pensions, rental income, or part-time work. The gap between those sources and your spending need is what your investment portfolio must provide.

From there, the planning gets more coordinated. Which account should you withdraw from first? Should you spend taxable dollars before IRA dollars? How does Social Security timing affect the plan? Are there years before required minimum distributions when Roth conversions might make sense? Could charitable giving be done in a more tax-efficient way? These questions matter because two retirees can spend the same amount and end up with very different after-tax results depending on how income is created.

This is also where investment management and financial planning need to work together. Your portfolio should not be built only around growth. It should also match the timing of your future withdrawals. Money needed soon should generally be treated differently than money intended for later in retirement. We often describe this as “putting dates to dollars.” It helps keep short-term market volatility from bossing around long-term decisions, which is helpful because the market is a terrible life coach.

At Legacy Wealth Management, we believe financial success is not just having enough money; it is using what God has entrusted to you with wisdom, peace, generosity, and purpose. Retirement income planning is part of that stewardship. The point is not to chase predictions or find a magic
withdrawal formula. The point is to create a flexible system that helps you live, give, owe, and grow with clarity.

So, how do you turn investments into a retirement paycheck? Start with a real plan. Identify your spending needs, coordinate your income sources, match investments to timeframes, and think carefully about taxes before you start taking withdrawals. If retirement is within the next five years, now is a great time to begin. Waiting until the retirement party is over works, but it is a little like reading the instruction manual after assembling the trampoline.

These are the opinions of Legacy Wealth Management, LLC and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Dan Funderburk is a Registered Representative offering securities through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Legacy Wealth Management, LLC and Cambridge are not affiliated. Cambridge does not offer tax advice. Copyright ©2026 Dan Funderburk. All Rights reserved. Commercial copying, duplication or reproduction is prohibited.