People hustle hard in their 30s and typically keep working hard until their 50s, hopefully, to be at ease and comfortable during their retirement period. But what if you can turn things around and make use of your retirement savings to still earn on the side?
One word – Investment
It is no secret that investing your money can bring you to try new things and go to places you have never experienced before.
To name a few:
- Treat your family to a fine-dining experience
- Enjoy a trip to a country you have meaning to go to for the longest time
All these and more when you find yourself considering these strategic ways to make it happen.
- The 4% “Safe” Withdrawal Rate
Like any other investment you wish to put your money into, you can always do the traditional approach. Withdraw 4% of the initial worth of your retirement savings and later on increase the amount per annum rate of inflation. This rule of thumb provides an excellent chance to stream income without needing to risk all your money. - The 7% “Optimal” Withdrawal Rate
Contrary to the simplicity of the first one, this second strategy yields a more optimal case as it offers twice as much. The 7% rate is a good balance between demanding competition of income and relatively preserving retirement savings. Consider this – a portfolio worth one million dollars is bound to generate a profit of $70,000 compared to the former of only $40,000. - Annuitization
One important thing to highlight about an annuity is that it caters to your retirement needs – growing your money without having to do much. It is a powerful tool utilized to bring forth benefits like:
– Growth potential from tax-deferral
– Potential long-term growth of assets that you can pass on to future generations
– Lump-sum growth opportunities and benefits
Purchasing this kind of investment gives you a guaranteed trade set by the insurance company themselves. They make sure that income continues to flow through the help of their expertise in the field.
Conclusion
When one decides to eventually slow things down, it is usually the accumulation of retirement savings that is their most significant source of income. As a retiree, you should be mindful of navigating your finances by following both a system and course plan for investment.
At The Modern Medicare Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (631) 358-5793. Get your free quote today by CLICKING HERE.
