Tag Archives: retirement income

#Retirement Planner Recommends 2-3 Yrs of Living Expenses for #Retirees!

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We got up at 5:30 am on Saturday morning to attend a retirement planning seminar. The most important advice imparted by the speaker was the following: Retirees should have 2 – 3 years worth of living expenses stashed away for emergencies! Why? The reason is that it takes 3 years (on average) to recover from a bear market. What is a bear market? Think back to the Autumn of 2008, when the stock market dropped 50% over a 6 month period of time from September 29, 2008 to March 5, 2009. That was the beginning of the bear market. The speaker said that it usually takes about 3 years for the economy to recover from a bear market. Therefore, it is crucial to retirees’ survival to have 2 – 3 years of living expenses to pay bills, and stay afloat. If a retiree has to spend down their retirement accounts to pay bills, they may have to sell stocks or mutual funds at depressed prices. In farmer parlance, that is called “eating your seed corn.”

Where To Stash Emergency Fund?

When saving for the emergency fund, the speaker advised safe bank accounts insured by the FDIC. Brick and mortar banks pay less interest than online banks, but pre-retirees and retirees are most likely more comfortable with brick and mortar banks. It is reassuring to know we can reach our brick and mortar bank in a few minutes, and access our funds.

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How to Turn #Retirement #Savings into #RetirementIncome! #retire

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You have sacrificed and saved for decades, and you are now ready to drop the 9-to-5 and spend your days doing something you enjoy! One of your first questions is — How do I turn my retirement savings into retirement income? If you are approaching 50 or over 50, it is only natural to wonder how to turn your retirement nest egg into a consistent income. You may have developed health concerns and want to prepare for the possibility of retiring early. Erik Carter, Forbes Contributor, has written an excellent article on the subject. For details, click here.

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5 Tips for Tapping #RetirementIncome! #retire #retireinspired

Financial Freedom

You have worked hard for decades. You have diligently saved money in your retirement accounts. You have invested in various stocks, bonds, mutual funds, etc. Now it’s time to retire and live off of the income generated from your investments. How do you tap your nest egg to pay your bills, and make sure your money lasts a lifetime? To answer that question, there are several factors to consider.

  1. How is your health?
  2. What is your family medical history?
  3. How long did your parents live?
  4. How long did your grandparents live?

Estimate your life expectancy based on the answers to the questions above. Will your money last that long? Additional factors are inflation, the performance of your investments, and how much you withdraw per year. There are several calculators to help you determine if you have enough money, such as T. Rowe Price Retirement Income Calculator. For 5 tips on drawing down retirement income, click here.

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