Ages 56-65 Retirement Strategy: Preservation and Income Planning (Cash Reserve)

If you're between 56 and 65, you should be thinking about preservation and income planning. Retirement is only 5 to 10 years away, so it's time to reduce risk and build income streams. Continue maxing out 401k for the match, but shift toward income-producing assets like dividend stocks, bonds, real estate cash flow. Do Roth conversions while working since you'll be in lower tax bracket than early retirement. Build 2-3 year cash reserve so you don't have to sell stocks in a downturn. The goal: have a nest egg you live off without reducing it. If you have $3 million net worth, live off 4% returns yearly without touching that $3 million working for you. #PreservationPlanning #cashreserves #incomestreams

Added 9 May 2026