Step 3: Make Your Money Work Harder
Here’s the good news: there are strategies that can stretch your resources.
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Add guaranteed income streams: annuities, pensions, or rental income can cover your essentials so you don’t have to constantly dip into savings.
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Use the bucket strategy: keep some cash and short-term investments for near-term needs (1–3 years), and invest the rest for long-term growth. This way, you’re not selling investments in a down market just to pay bills.
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Be smart about RMDs (Required Minimum Distributions): pulling too much from tax-deferred accounts can create a tax hit — plan your withdrawals carefully.
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Cut discretionary spending: not fun, but even trimming 10% off entertainment, subscriptions, or shopping can save thousands over a decade.
