Finance is Fun: Possible Sources of Retirement Income
Marion Syverson was in for this week’s Finance is Fun talking about seven possible sources of Retirement income.
Though for many Social Security is the central source of retirement income, there are other possible places from which some income for your future might be obtained. The goal in retirement is to fashion together income streams that all together provide you with some dependable income. Here are some ideas.
Rent – If you own an apartment, duplex or business property? The rent from that asset may provide you with money to offset your living expenses. Where the money is allocated to taxes, winter heating costs or a monthly bill, the size of the income needed be a lot to help cover an expense.
Annuities – Annuities can provide lifetime income. Once again this stream needed be big so long as it provides another source of covering your expenses. Even fifty dollars a month is a blessing.
Inheritance – Millions of dollars change hands every year through inheritances and yet many have not properly prepared for the transition. Creating the retirement income you are looking for may be helped with funds gained through the generosity of loved ones.
Savings accts – Savings accounts and certificates of Deposit (CDs) make up a larger portion of retirement income the previous income sources. Having a plan for how the money may be allocated, to what bill or pleasure, may be help in making sure your needs are covered.
401k – Retirement plans accumulated from your own savings through tax-deferred plans through work or in Individual Retirement Accounts (IRAs) which generally make a significant source of funds for retirement. If you still have time, do everything you can to begin an account or to add to your savings.
Part-time work – About twenty percent of retirees find that part-time work is a great source of additional income. If jobs are available and you are healthy enough for work, you may enjoy not only the money but the social interaction.
Pensions – Defined pensions have been discontinued at many companies because of their expense to the firms. The Bureau of Labor Statistics reported thatabout twenty two percent of full-time private industry workers recently got a defined pension benefit. Once again, no matter the amount, this can work with other sources of income to provide you with some financial stability.
The goal in having this discussion is to help you know that many of the people that I work with use every possible source of income to piece together their retirement income. It’s a little like having many paychecks and so the transition can be a little confusing. But once you get everything set up, and have a plan for each piece of money. Things will be good.