Latest Retirement Strategies News
Aug 29, 2020
— Set up retirement “bonuses” to supplement those retirement “paychecks” by creating a Retirement Income Generator (RIG) that will cover additional desires and discretionary purchases in retirement beyond your regular monthly retirement “paycheck.” — Build a cash stash. That’s what Vernon labels this emergency fund set aside safely in an insured account at a bank or credit union. (I’ve always called it “chicken money.”) The goal is to have a liquid amount of assets to cover unforeseen expenses, like uncovered dental bills. The secondary benefit of having this cash stash is that you can stick with your income-generating investments, knowing that you have cash for emergencies. But how do you actually put this strategy in place? After all, we know we are living longer, medical costs are rising, and the stock market is volatile. There are so many uncertainties. That’s where this practical guide helps you put your plan into action. There’s a key chapter on Social Security strategies, whether you expect a long life or have health challenges that could diminish your longevity. Waiting as long as possible to take Social Security not only gives you a larger immediate paycheck. It also gives you a higher base for future inflation adjustments. Making the correct first decision about Social Security timing could impact your retirement income by over $100,000 according to Vernon.