Your Retirement Income Education Begins Here
Retirement-Income.net covers every conceivable financial aspect of retirement planning and then living comfortably in retirement. We keep things up-to-date by continually adding posts to our Retirement Blog.
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Retirement Income Advice – Not What You Think
You will find that issues in retirement are not always intuitive. There are many ill-conceived fallacies.
For example, most people think that if you have few assets coming into retirement, you should keep all of the money as safe as possible in bank accounts. The correct advice is just the opposite. Only if you are rich (say have $5 million dollars) can you afford to have money in the bank at 1% and live on the $50,000 interest. If you have modest assets, you MUST invest more aggressively to give yourself a fighting chance. To invest at 1% will likely be a certainty of running out of money with no fighting chance.
Yet another misconception is that many retirees believe that the money they receive from social security is money they paid in during their working years. This is less than half true and we will show this in a post at our blog. You only pay in enough money to social security from your paycheck to supply about 4 years worth of payments to you once you retire. So if you retire at age 66, by age 70, you have received back all of what you have paid in. Where do the remaining payments come from for the rest of your lifetime? It comes from the paychecks of your children and grandchildren who are working. In other words, younger working people are directly funding the payments being received by most retirees. You can clearly see how this is a huge problem for the economy.
Yet another misconception is that biods are for income and stocks are for growth and one should allocate their assets more to bonds for income as retirement is approached and entered. We show you that stocks have in fact been a higher and MORE RELIABLE source of income than bonds or bank accounts.
The authors of this blog have no bias. We are not here to sell anything or convince you of anything other than what is really true about sound retirement planning and having a comfortable retirement income. Keep in mind whenever you get or hear advice–does the provider have a bias, an incentive for their point of view (such as your financial advisor trying to sell you something)?
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