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How much money will it take for you to live comfortably in retirement? Are you covered if you don’t have enough saved in your nest egg? What happens if you live longer than expected?
Those close to retirement may have plenty of questions and concerns when it comes to maintaining a steady income after retirement.
Knowing how to handle your 401(k), when to take Social Security, how to budget for healthcare and even whether or not you should work part time are all common dilemmas.
Ultimately, we believe your best solution is to invest for your retirement, and use your portfolio to generate additional income. But there are plenty of things that any retiree needs to know before jumping into the process.
That’s why we are covering some of these essential retirement income topics over the course of these articles.
We hope that by the end, you have a clear understanding of what’s involved in managing your income and retirement and you have a clear solution for moving forward into your golden years.
In an ideal world, retirees would have so much money saved before retirement that they could hang up their hat without having to work for another dollar. However, income in retirement is a huge challenge for many retirees.
Unfortunately, the majority of Americans can’t pinpoint exactly how much they’ll need to live comfortably for the extent of their golden years. In a recent report by Merrill Edge, they found that “many Americans are unable to articulate their ‘magic number,’ and more than half of respondents didn’t think they’ll need more than $1 million.”
Will you still hold down a job after retirement? According to one survey, 75% of Americans believe they will have at least a part-time job after they retire, and 62% of those surveyed cited financial motivation as a primary driver. Working in retirement may be a choice or a requirement.
Read more: Should You Work Part-Time After Retirement?
Every day, 10,000 Baby Boomers turn 65, the average age of retirement in America. Unfortunately, not all of them are able to retire. The biggest issue faced by retiring Boomers is money: they didn’t save enough of it pre-retirement and/or Social Security won’t cover enough post-retirement.
Read more: How Much Social Security Will Really Cover
Many people spend their working years focused on building up a nest egg in the form of a retirement plan like a 401k (or an IRA, or both). But by the time retirement actually draws near, many are left scratching their heads about how to turn that nest egg into livable income.
Read more: Turning Your 401k Into a Portfolio Paycheck
Many investors have successfully generated real estate income to supplement retirement income, and recent statistics show that 89% of U.S. investors are at least interested in real estate investments, and 96% of those who have invested found some financial success.
Is a nest egg of one million dollars enough to retire comfortably? How about half that amount? What’s the minimum you would need saved in order to have a comfortable monthly income after retirement? How would cash flow investing make reaching your income needs even easier?
There is no one-size-fits-all solution for generating or maintaining income in retirement, which means that every retiree will have questions and concerns about choosing the right strategy.