How do I replace my salary with a regular income from my investment(s)?

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This is the most difficult part for most retirees and really is a matter for professional assistance. So this is where an adviser fits in. The issue includes identifying your cash flow requirements and arranging your investments in order to meet those ongoing lifestyle needs.

A good financial adviser should help you to organise your affairs in such a way that you have regular deposits into your bank account to top up your NZ Super income. This can be done from a range of investment options. Investing directly in property might produce rental income to top up any current cash flow but if you require capital you will either need to raise a mortgage or sell the property.

Bonds or term deposits allow you to align the maturity dates in order to have access to lump sums and you may be able to organise interim interest payments to be paid directly to your bank account.

Investing in shares has the advantage of being more liquid as shares can usually be sold on the market at any time if a lump sum is required, especially at short notice. Dividends can provide an income stream but are not guaranteed and the volatility of the market is a potential problem. If you are not fully aware of how the sharemarket works you could put your retirement lifestyle at risk.

Whilst the safest option is having a mixture of all the above investment avenues you need to be careful as this approach requires time and close management to ensure you get the right balance you need to replace your salary. By having the correct mix of investments you should be able to liquidate sufficient income/capital to fund your ongoing needs.