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.
Safe Utility Stocks for Retirement In retirement investing, having a portfolio that can provide a safe and steady stream of income is of the utmost importance. On this matter, one group of companies clearly stands out: utilities. Here is a.
Safe Dividend Stocks for May 2017 Dividend-paying stocks are a great way to generate an income without selling your shares of a company. Based on time, patience, stock price gain, and income, dividend investing can add greatly to your overall.
Best Dividend Stocks to Own for Retirement Saving for retirement is not easy. A report last year showed that, in the U.S., people between the ages of 65 and 69 were more likely to be working than teenagers were, except.
This Dividend Stock Hasn’t Missed a Payment Since 1925 Today’s article highlights one of my favorite “forever assets,” Kellogg Company (NYSE:K). I coined the term “forever asset” to describe a group of top dividend stocks that have rewarded shareholders for.
Monthly Dividend Stocks for Retirement Income You may have seen the recent Bloomberg profile of the retiree who had to take a fast food job. At the height of his career, the former executive earned a six-figure salary. He spent.
Best Vanguard Funds for Retirement The objective of investing is to generate a regular stream of income and, more importantly, preserve capital. One way of achieving this is by buying individual stocks that pay out a dividend. However, stock picking.
Retirement Stocks to Buy in April Your retirement goals could be achieved many different ways, one of which is by working for a company that offers a pension plan. Then, once you work for a certain amount of years and.
Types of Employer-Sponsored Retirement Plans One important factor that many employees forgot to ask their employers about is the company’s retirement plan. After all, for most, retirement still far in the future, so there is no sense of urgency to.
How Rising Interest Rates Impact You The U.S. economy is rockin’ and rollin’, but rising interest rates could shut the party down. We have spending soaring, sales at record highs, and unemployment dropping though the floor. Inflation, though, has crept.
Top Places to Retire in Florida Choosing where to retire is one of the most important decisions you’ll make. Shifting from the workforce to being a retiree is a life-altering process that will largely dictate how those next decades of.