7 Retirement Income Streams To Achieve And Sustain Your Lifestyle GoalsSubmitted by Reby Advisors | Certified Financial Planners | Danbury, CT on November 20th, 2016
Two trends make retirement income planning more stressful and complex than ever before: life expectancy is rising, and retiring Baby Boomers want to sustain their lifestyles after they stop working, rather than making significant spending cuts. This means they'll need more income each year for a greater number of years than previous generations.
Low interest rates, rising prices and taxes, and global economic uncertainty further complicate the challenge.
That’s why it’s so critical to have a holistic income strategy that taps into as many of the 7 potential retirement income streams as possible:
- Income from retirement accounts
- Income from non-retirement accounts
- Social Security
- Home equity conversion
- Part-time income
- Rental income
Investment income, Social Security, and pensions are the Big 3 that most people think about, but for many, the less traditional income streams may be just as important:
Can you convert a portion of your home equity into an income stream? With the kids out of the house, can you add rental income? Do you have a passion that you may be able to turn into part-time work?
Retirement doesn't have to be an all-or-nothing deal. You can also transition into retirement by working part-time doing something you enjoy. It can be freelance writing, working at a hobby shop, even snowbirding to Florida to work at Disney. If it's stress free, fun, and puts some additional spending money in your wallet, why not?
Even after you’ve worked out how you’ll generate your income, there are still some questions that need to be answered:
1. How much income can you get?
2. How will you keep pace with rising prices and taxes?
3. Will you be able to generate enough income through financial storms and difficult economic times?
4. With all of the economy’s uncertainties and potential outcomes, what is the probability that you’ll be able to sustain your lifestyle without outliving your assets?
Complimentary Income Sustainability Analysis
The new Probability of Income Sustainability Analysis we've developed answers these four questions by testing your assets against 1,000 possible economic scenarios, including rising prices, market crashes early in retirement, and even extended bear markets. The results get compiled into a percentage score - your probability of success - and based on that score, we’ll tell you whether you’re within the target confidence level to fund all of your lifestyle goals without outliving your assets.
If you're a Reby Advisors client, we've likely already done this type analysis for you as part of your comprehensive financial plan. If you'd like to revisit this topic, we're happy to clarify any concerns you may have.
If you're not a current client or know someone who may benefit from this analysis, you can learn more here: http://content.rebyadvisors.com/income-analysis.