Or is it? Planning for retirement is something most people don’t do very well. Why? Because it takes too much work and it’s something that may be very far down the road. And let’s face it. Planning for a 2-week vacation is much more fun. We picture ourselves on the beach, taking a cruise or exploring the ruins in Rome and the beautiful Amalfi coast or Sicilian landscape.
Yet our retirement will be the longest vacation we ever take. So, shouldn’t we take more than a few weeks to plan for it and begin to paint a picture of what it may look like? So why do we continue to procrastinate? Perhaps it’s because there are so many opinions out there. Your parents, uncle, best bud or financial advisor have the best way to save and you don’t know who to believe. It becomes overwhelming and that’s when people decide to do nothing.
Even the largest financial services companies are trying to confuse you by airing commercials about what’s your number. They ask, how much money do you need in retirement? Is it 70%, 80%, less or more of your current income. Why is everyone making is so confusing?
Well, I have the panacea, so to speak. We will simplify this retirement problem once and for all.
Folks, it’s not about assets. It doesn’t matter whether you have a couple hundred thousand or a few cool millions. Assets don’t give you Peace of Mind in retirement. Are you ready? This is easy. The magic word, pill, call it whatever you may…. It’s income. Income will give you the optimal retirement you need. I didn’t say the best. I said optimal.
When you have monthly income to take care of your basic expenses, you are on your way to a more enjoyable retirement. And how do you get income? All those 401ks, IRA’s, money market or CD’s are assets that you can convert to income. Once you find out what your basic expenses will be in retirement, you can convert some of your assets (there’s that word again), into an income stream you cannot outlive.
And one of the best ways to do that is by re-positioning some of your assets into a type of annuity, that will give you a guaranteed monthly check you cannot outlive. This will give you the Peace of Mind to keep your other assets in the market without having to worry about how those other assets are doing.
So, keep it simple and think about how much income you will need in retirement rather than assets. Income will help you achieve the type of retirement lifestyle you deserve and help you ensure that you will not run out of money in retirement.