What Does Stan The Annuity Man Mean by “Income That Hits Your Checking Account”?

Short Answer

Any reliable cash flow that deposits into a checking account and helps pay living expenses can be considered retirement income.

What Is Retirement Income?

Retirement income is money received after employment that supports ongoing living expenses and daily needs.

How Retirement Income Works

Income may come from Social Security, pensions, dividends, interest, rental income, or other consistent cash-flow sources.

How Retirement Income Works Under Current Conditions

Defined contribution accounts, guaranteed income sources, and interest-producing assets may all contribute to retirement income when funds are withdrawn or paid.

When Guaranteed Income Is Used

Guaranteed income sources such as Social Security and pensions are commonly used to form a baseline income floor.

When Additional Income Sources Are Needed

When existing income sources do not meet spending needs, additional income may be generated through contractual guarantees.

Common Misunderstandings About Retirement Income

A common misunderstanding is that only guaranteed income sources count as retirement income rather than all consistent cash flows.

Key Considerations for Retirement Income

Key considerations include income reliability, consistency, and whether cash flow meets ongoing expenses.

Bottom Line

Retirement income consists of all reliable cash flows that support expenses and form an income floor.

FAQ

What counts as retirement income?

‍Any reliable cash flow that hits a checking account and helps cover expenses.

Is Social Security retirement income?

‍Yes. Social Security is a primary retirement income source.

Do dividends and interest count as income?

‍Yes. Dividends and interest are retirement income when withdrawn and deposited.

Is rental income considered retirement income?

‍Yes. Rental income is retirement income if it produces consistent cash flow.