I think a lot of people today think of retirement as maintaining your wealth after you stop working so you do not run out before your time has come and you have wealth to pass on. Once you are retired you need to find a new source of wealth since your income stream will have most likely changed. A question retiree’s will ask themselves is,”How long will my retirement money last; and will it be enough to maintain the lifestyle I want?” These types of questions can be answered by thinking of “how do you make money in retirement?” or “how do you use your retirement to bring in passive income?”
Most people are used to investing their money for small to decent returns in the stock market. However, there are other options, such as using a self-directed IRA for investments. This way your investments can be income producing, while still remaining in your IRA, so you can continue to receive your current benefits and grow as well. Now, you may be asking yourself “what is a self-directed IRA and how does it benefit my retirement?”
As we have seen time and time again, market volatility due to fundamental events in the markets and government can lead to significant losses unless you prepare with investments in more than one area in case one declines. We can see in our current market it has not only shown significant volatility over the past several years, for example, the 2008/2009 decline; but it continues to show signs of increased volatility with the current trade war with China, and the upcoming election.
Since we understand the need to create income in retirement, we need to now ask “what are income producing assets?” Income producing assets are:
After having these questions answered, you should have a better understanding of how to make your retirement savings last. The key takeaway is that you can maintain your retirement by diversifying your investments. Although this may seem daunting to some people, this is the best time because during your retirement you actually have more freedom to create income without working by making thoughtful and strategic investments. If you are someone who is retired or close to retiring, and you need further understanding of how to make these options work for you, please reach out to us at firstname.lastname@example.org and one of our representatives will contact you.