Week 44 Day 6: Income Flooring: Covering Minimum Needs With Guaranteed Money

The income floor strategy separates your retirement spending into two buckets: essential expenses (housing, food, healthcare, insurance) covered by guaranteed income (Social Security, pensions, annuit...

The income floor strategy separates your retirement spending into two buckets: essential expenses (housing, food, healthcare, insurance) covered by guaranteed income (Social Security, pensions, annuities), and discretionary expenses (travel, hobbies, gifts) funded by your investment portfolio. If the market crashes, your essentials are still covered.