How do I create a retirement paycheck from my investments?
A retirement paycheck is a regular transfer from your investments to your checking account, set up with the custodian. It usually starts from two figures: total household spending, and the smaller amount the portfolio must supply after pensions, Social Security and other income.
The money can come from a cash reserve, investment income, sales of investments, IRA distributions or a mix. Each source has different tax treatment, and IRA distributions can have federal tax withheld so the payment arrives closer to net.
There is no single correct structure. The right approach depends on spending needs, account types, cost basis, tax brackets, RMDs, Social Security, Medicare, charitable plans, estate objectives, investment risk and market conditions.
Reviewed by Bay Area Wealth Advisors. Last reviewed 2026-10-02. Educational information only — not individualized financial, tax or legal advice.