April 2019- For those worried about liquidating investments to create income in retirement, consider whether using your life insurance makes sense. Selling stocks or equity funds during a market decline can have a devastating effect on how long your investments can support your retirement income needs. Selling bonds or bond funds when interest rates are rising can also have the same effect. However, if you have cash available in your life insurance policy (the Cash Surrender Value: CSV), you can avoid market risk by using some of the CSV to secure a line of credit. Interest does not have to be paid monthly, and there is no income test, which can be a problem for retirees not earning income. The capital and interest can be repaid anytime without penalty, or it will be repaid from the insurance proceeds upon your death. This leaves the remainder of your life insurance, investments and other assets for your loved ones. As always, get professional advice to be sure this makes sense for your specific situation.