April 16, 2014 § Leave a comment
Money in retirement. It is the culmination of our efforts, the harvest to enjoy in later years. When we are relaxed on an exotic beach, or chasing the grandkids, our retirement income, the careful planning, allows us to rest easy knowing our futures are bright and secure.
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 the level of income you may need to cover expenses and fun. This stream added to that income stream, plus this one equals your total bucket of money for each period.
You might use some of these ideas to provide possible supplemental income for you.
Rent – Do you own an apartment, duplex or business property? The rent from that asset may provide you with money to offset your living expenses. You might budget this money for an expense that is similar in value, such as taxes, winter heating costs or another monthly bill.
Annuities – Annuities can provide lifetime income. Once again this stream needn’t be big so long as it provides another source for covering your expenses. Even fifty dollars a month added to your income 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 those who love you.
Savings accounts – Savings accounts and Certificates of Deposit (CDs) make up a larger portion of retirement income than the previous income sources mentioned above. Having a plan for how the money may be allocated, to what bill or pleasure, may help in making sure all of your needs are covered.
401k – Retirement plans accumulated from your tax-deferred plans through work, or in Individual Retirement Accounts (IRAs), for many of us generally make a significant source of funds for retirement. If you have several years until you plan to retire, renew your saving efforts by either beginning an account or adding to your established retirement saving accounts.
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 that about 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 additional financial stability.
The goal in having this discussion is to help you know that many of the people who I work with use every possible source of income to piece together their retirement income. The transition into retirement, receiving only a single adequate paycheck (or two if it is a two-income family) to multiple checks from various income sources, can be a confusing transition. But once you get everything set up, and have a plan for each piece of money, things will be good. (CR9920)