Setting up income streams for retirement is the best way to ensure that you don’t out live your money as well as sets the foundation to proper estate planning for your family.
Planning while in retirement is just as important as planning for retirement and developing the proper retirement income streams is essential to do so. Some things to consider is:
- How much money can you generate from the savings you already have?
- How much is needed to fund the lifestyle you already have?
- What will do when things change?
Most people choose the incorrect asset allocation when deciding on the investment options in their company sponsored 401k or plan. Most people don’t actively manage their retirement portfolio and take the attitude of “set it and forget it”. If you would like the benefit of passive income streams for retirement its’ going to take some proactive efforts on your part to accomplish this.
Two simple things that can be done is:
- Use the “Auto Escalate” feature of your company sponsored plan.
- Simply look at you plan twice per year to make sure its performing well.
If you will be taking in social security at retirement consider working in government benefits to your current 401k plan, IRA, Pension, etc. You want to hone in on when you should begin taking your government benefits in conjunction with your company plan to produce the proper income streams for retirement to fit the lifestyle you desire. Next, probably the most important thing to consider which usually makes up the biggest expense for an individual is to consider healthcare. Make sure funds are earmarked for this purpose or the proper protection is in place to facilitate this. Lastly, retirement is supposed to be the Golden Years but many are stressed out about outliving your money. Consider your Needs, Wants and Wishes.
- Needs – House, Car, Food
- Wants – Travelling to see family
- Wishes – Exotic Vacations and such
With the proper information, guidance and strategies you can ensure you have sufficient income streams for retirement to live your days in comfort.