7 Ways to Turn $250,000 Into Retirement Income

Crack into a nest egg without breaking it: Simple, safe ideas on generating income in a low-rate world.

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Cash and Treasury Inflation-Protected Securities (TIPS) will be best as inflation rises: Jay Hutchins, The Wealth Conservatory, Lebanon, N.H.

"The prospects for inflation and rising interest rates renders everything except cash and short-term TIPS risky, and both cash and short-term TIPS generate very low income. But given your criteria [of steady income stream], some sort of immediate annuity from a strong insurance company—or maybe even divided between a couple—would likely fit your bill best."

Generate income with dividends and fixed income: Maryan K. Jaross, Gold Medal Waters, Boulder, Colo.

Create a portfolio "across the market in all asset classes, [which] generates interest from the fixed-income side as well as dividends through the equity side, plus additional cash when asset classes need to be rebalanced. Selling the winners and reinvesting in the losers—the hardest discipline for an investor to achieve without the assistance of a professional adviser—because we never know which asset class will be at the top. Cash is taken out at these points to satisfy goals, the most important of which is usually the retirement living expense."