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.
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.
This Should Keep Retirees Up at Night Let me tell you a story… Sometime soon, the White House will hold an emergency meeting on Social Security. No one there will have a good solution to propose, because there will be.
This Should Keep Retirees Up at Night President Donald Trump has stepped up calls for a weaker dollar, which could leave some retirees struggling to catch up. Over the past few months, the White House has started a push to.
This Retirement Plan Pays 7% “Rob, low yields crushed my retirement.” my neighbor Alan explained. “For most of my life, you could always earn a decent interest rate. If we could find five percent on a bank CD, the wife.
States That Do Not Tax Retirement Income In retirement, one of the largest burdens is tax liabilities–the money paid to the government from your social security, military retirement plan, pension account, and/or investment retirement account. And since you’re no longer.
Dividend-Paying Bank Stocks When it comes to picking stocks for retirement investors, the key is to find companies that can generate a steady–and hopefully increasing–stream of dividends. One of the industries that has produced a lot of solid dividend payers.
How to Retire Early with Stocks Retirement investors make up a sizable portion of our readership, and that’s in part due to the power of dividend stocks. With the right stock portfolio and enough patience, an investor can build a.
Best Dividend Stocks for Retirement Income One of the most important aspects of a successful retirement is earning a reliable and steady income source. One proven method, regardless of where you are in your life, is by owning high-quality dividend.
Pipeline Stocks with High Dividends With oil prices still in the doldrums, investors may have second thoughts when it comes to investing in the energy sector. Still, as we have discussed earlier here at Income Investors, investing in this sector,.
How to Retire Early Have you ever thought about early retirement, but believed that it just wasn’t possible? If you’ve thought this, you’re not alone. However, you may be surprised to learn that that a few people actually make this.