Make your money work when you’re not: Creating an income-producing portfolio

If you have savings and investments to help support you when you retire — or, before then, if you take an unpaid leave from your job — you can put that money to work in ways that help cover your short-term income needs without sacrificing your long-term security.

If you have savings and investments to support you in retirement — or, before then, if you take an unpaid leave from your job — you can put that money to work in ways that help cover your short-term income needs without sacrificing your long-term security. How much income you can generate depends on several factors, including how big your nest egg is, how it’s invested, where interest rates go and your risk tolerance. A lot goes into creating and managing an income-producing portfolio that works for you. But here are some basics to consider. Ideally, you want to begin planning three to five years ahead of when you plan to draw income from your portfolio. Start by asking: How do I want to occupy my time when I leave my job? Will you still do paid work, just not put in as many hours? Do you want to travel a lot? Go back to school? Build an eco-friendly home?