When you start organizing your portfolio you will want to consider how you will be spending your money after you retire. Some money will be deposited directly into your checking account; such as Social Security where as other income could be less predictable. It is always nice to get extra income you are not counting on but you must not plan on this.

Some investments pay on a regular basis such as bonds and annuities. The trick of the matter is to produce enough money year after year to sustain you for as long as you will need it. In order for this to be accomplished your profit must be greater than the rate of inflation. In other words it is necessary that some investments grow in value at the same time that other investments are providing you with income.

Some reliable companies that pay dividends can provide a steady income if they are continually growing themselves. Because this is unpredictable, however, it is important then to have some investments that are reliable and are in an instrument that can be depleted. You will want to organize the amount of withdrawal from different instruments so that your assets will last as long as you do. It would be wise to take from the amount that you receive monthly and put a reserve away for large but anticipated expenses.

It is all right to deliberately spend your money as long as you don't die before it runs out. Tax deferred investments make it mandatory for withdrawals to be made. IRAs are a good example of this. Withdrawals from annuities work the same way. Taxable investments work differently. You can choose how much you might care to withdraw and you can allow the principal to keep growing. By having the options with different retirement accounts you broaden your base and organize a portfolio that should cover all areas at retirement.