Retirement generally refers to the period of time when an individual leaves the workforce on a full-time basis; historically, that’s been when we reach the age of 65. A comfortable retirement was the goal for which people worked and saved.
Today, roughly 10,000 baby boomers enter retirement every day and will continue to do so until 2029. Because of our improved standard of living, we are living longer and longer.
In 1916, the average lifespan for an American male was just 49.6 years, while women could expect to live until they reached 54.3 years. One hundred years later, the average life expectancy in the U.S. is 76.4 years for males and 81.2 years for females. Many will live much longer. In fact, for those retiring at 65, it’s quite possible that they’ll spend roughly 35% of their lives in retirement.
Saving for retirement is not just about putting money in the bank. It’s about replacing your main source of income when you retire with another source of income. To retire comfortably, it’s important to set goals.
Retirement income comes from three different sources: Social Security, pension plans, and investments. The average retired worker in the U.S. will receive approximately $16,092 per year, or $1,341 per month, from Social Security. On top of that, only 50% of the U.S. workforce is covered by a work sponsored pension plan.
Since Social Security cannot fully replace retirement income, it’s imperative to adopt a diversified investment strategy that includes 401(k)s, stocks, bonds, mutual funds, real estate, and more. That said, it isn’t easy to create a viable retirement investment plan, especially in a low-interest-rate environment. Artificially low interest rates have essentially removed the word “income” from income investing.
While interest rates have been near record-lows, inflation can still have a powerful impact over the course of your retirement. For example, if the inflation rate is two percent, in 25 years, you would need more than $82,000 to purchase something that costs $50,000 today.
There is no easy way to retire comfortably. But there are a number of investment options that can help those nearing retirement increase their income and reduce their risk.
Who Else Wants More Income? When it comes to retirement savings, the United States is on the verge of a crisis. The Harvard Business Review says the median retirement account balance sits at just $14,500, while MarketWatch says one in.
Earn More Retirement Income Many baby boomers have accepted the blunt new reality of financial planning: the combination of low interest rates, rising life expectancy, and the decline of pension plans has turned retirement into an anxious proposition. With 10,000.
Retiring…or Not Do you have enough savings to live comfortably in retirement? I hope your answer is “Yes.” But, according to a new study by Northwestern Mutual, a shockingly high number of Americans answered “No” to that question. The study.
When to Collect Social Security Benefits? One question I get a lot from family and friends nowadays concerns Social Security. “Rob, I’m trying to figure out when to start collecting benefits. What’s the right age to enroll?” Apparently, they’re not.
The Secret to an Oversized Passive Income Stream Retirement investors haven’t had the best of luck in recent years. Interest rates were kept artificially low by the U.S. Federal Reserve, meaning fixed-income products paid next to nothing. And due to.
The 7% Retirement Solution How much have you put away for retirement? Can you say with certainty that your savings will last you through your golden years? The problem is, it never really feels like enough, no matter how much.
If You Were Born Before 1967, Read This How do I make decent yield on my savings? For thousands of Americans approaching retirement, this question keeps them wide awake at night. And you can’t blame people for worrying. After all,.
Best Income Funds for Retirement For decades, dividend stocks been playing a crucial role in helping retirement investors achieve their goals. However, not everyone wants to spend the time and effort researching individual stocks. For those that want a simple,.
Buy-and-Hold Retirement Stocks Have you searched for stocks for your retirement portfolio and had no luck? This article will go through a list of the potential seven (7) best buy-and-hold stocks to own forever in your retirement account. These companies.
Dividends: Yes, They Matter I got hooked on dividend stocks after my first check arrived. Sure, I loved watching the value of my shares grow. This felt different, though. Here was cold, hard cash arriving in my bank account each.