Filling Your Retirement Income Gap
Do you know where your income will come from in retirement? What accounts and investments will you use to build an income? Let’s discuss the ways you can fill that income gap so you aren’t worried about running out of money in retirement.
(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)
How do you find ways to build income in retirement? After 30-40 years of working and taking home a paycheck, it may be startling to not have that in retirement. Instead of focusing solely on how much you have saved for retirement, you’ll want to figure out ways to take an income from your accounts and assets. But which accounts do you take this income from?
If you have mutual funds, stocks, bonds, or real estate these are usually taxable accounts. Then you may have pre-tax accounts like your 401(k) and tax-free accounts like a Roth IRA. The question is, how can you strategically take out money from these various accounts in retirement? Even with Social Security or a pension, you may have income gaps you’ll still need to fill.
What Else Should We Consider:
Are annuities a place to fill this income gap? In this episode, Brian talks through what annuities are, why people use them, and strategies to build an income in retirement. Regardless of how much money you have in investments, it’s important to back into the decision in order to determine how to plan for the most income and best flexibility.
When it comes to Social Security, where do you get advice on how to use it and how much you are entitled to? Should you ask Social Security employees for advice or work with a financial advisor? When should you take it and when do you need it as you work toward building an income in retirement?
Listen to the full episode or click on the timestamps below to hear Brian talk through your retirement income options.
[0:16] – The most important thing in retirement is: income, income, income!
[1:49] – Which accounts should you take retirement income from?
[4:02] – TIAA did a study about the three major gaps in coverage.
[6:53] – Are annuities a good idea for your financial future?
[12:30] – An economics professor says you have to take responsibility to figuring out your Social Security entitlement.