More than 6,000 people had their 65th birthday every day in 2006, according to the most current statistics available from the U.S. Administration on Aging (www.aoa.gov). Further, the average life expectancy in the United States is nearly 78 years, according to data from the Centers for Disease Control and Prevention (www.cdc.gov). It’s no wonder that adequately living off your retirement savings for several years has become top of mind for so many.

Historically, retirement has been viewed as the "end game" when people cashed out on their investments and happily lived out the remainder of their years. Realities including the increase in life expectancy and the desire for an active, vibrant lifestyle throughout retirement years are challenging this theory.

I tell my clients retirement isn’t an "end game." This is not a 10K race. It’s not even a marathon. It’s more like a triathlon! You may have finished the swim (created and implemented your plan), and are now on the bike (started to draw on your savings), yet the run (making your money last) is still to come.

The once popular notion of living off the income of your investments versus the principal is antiquated.

Today, you need to consider how to best utilize your total portfolio. Instead of only drawing on the income or principal of your investments, it’s increasingly important to have a plan for growing your portfolio — especially during your early retirement years. Help make sure your money lasts and you can live the life you please.

The key to living well in your retirement years is what I call "D3" — diversify, diversify, diversify!

Diversify step 1

Evaluate the types or asset classes of investments you hold. Investors should have adequate diversification across asset classes. Though the stock market is volatile right now, owning bonds alone may simply be a recipe to grow poor "safely".

With the help of an experienced investment professional, you should consider a mix of stocks, bonds, Real Estate Investment Trusts, international exposure and, if suitable for you, alternative investments.

Diversify step 2

Diversify your equities with an eye on style, sector and size.

• Style — Growth stocks have tended to perform better in a slowing economic environment. It’s also a good idea to consider income stocks that pay a regular dividend.

• Sectors — You don’t want all of your holdings to be in one industry so a review and balance of the sectors in which you hold stocks is important. Consider investing in companies that generally benefit from a global economy through strong export growth.

• Size — The slowing U.S. economy and profit growth generally bodes well for larger companies with more diversified and globally leveraged earnings streams. Small caps’ earnings tend to depend more on the domestic economy. A jittery stock market, credit tightening and lowered appetite for risk also favor large-cap leadership.

Diversify step 3

Review the tax diversification of your investments. Taxes are relatively low right now, yet none of us knows what the future holds for tax rates. Having witnessed this process many times, you can be assured that even a few percentage points difference in the rate of taxation can dramatically impact retirement savings.

Balances on tax-deferred plans such as in 401(k)s will be subject to ordinary income taxation when withdrawn. The same will be true for many stock-option plan recipients and those who have corporate pension benefits.

If all of your investments are in tax-deferred plans, your withdrawals against the principal and interest will be subject to the current tax rate, which may be higher than it is today.

You do have options — and some excellent ones — for creating the proper balance in your portfolio with regard to your tax liability.

Roth IRAs, individual (or joint) non-IRA investment accounts and tax-free municipal bonds are three good after-tax options.

An experienced investment advisor will be able to review all of these factors and options with you and help you determine how best to structure your portfolio to live well in your retirement years.