Answers

  • Steve 


    NewRetirement

    San Francisco, CA

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  • Good question.

    First you should think through and work up a budget for what the minimum income level you'll need in retirement to maintain your quality of life.

    Then you need to review your options for generating this income. Our calculator can help you identify some options for generating this income and so can a fee only financial advisor.

    One option to consider would be to buy a fixed income annuity that either starts now ($100,000 investment would get you ~ $600/month in today's environment) or starts later which basically is "longevity insurance" ($100,000 would likely get you $2,000+/month if you started the income at age 80 instead of age 70).

    https://www.newretirement.com/Services/Annuity_Calculator.aspx

    Depending on your assets some of the things that can generate income include:
    - Human capital aka working
    - Optimizing your portfolio allocation and rebalancing to maximize your risk / return mix
    - Annuity - buying a lifetime stream of income
    - Reverse Mortgage - leverage your home equity to generate income
    - Life Settlement - selling your life insurance to an investor (most life insurance ends up lapsing today or being "sold" back to the insurance company which is often not favorable to the insurance holder since there is only one buyer in that scenario)

    Hope this is helpful

  • Login to rate this answer:   Answered on 4/29/2013
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  • What a question huh? There are at least 77 Million people probably asking the same question! There are so many uncertainties that factor in: How long you will live, health and health care costs, inflation, interest rates, investment returns and more. In the end there are no guarantees- all you can do is carefully asses your options , create a plan and then monitor and update that plan based on changing circumstances. I suggest that you consider doing that by hiring a professional financial advisor that will work with you - in person - on a regular basis. Its a difficult task to tackle alone, for sure.

  • Login to rate this answer:   Answered on 4/26/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.