We live in an age where information is instantaneous, but that doesn’t mean all that information is necessarily truthful! How many times have you seen news surrounding a celebrity, only to discover a few hours later it was all a hoax? The same can be said in the world of retirement planning. Here are three retirement myths you shouldn’t be fooled by!
You may or may not have heard of the “4% rule”; to put it simply, this rule of thumb states that a retiree should be withdrawing 4% of his or her portfolio each year to maintain longevity. While this may seem like an easy rule to follow, this simply doesn’t apply to many in retirement. Like no two people are the same, neither are their retirement income needs. Your portfolio may contain higher-risk investments compared to your usual index funds or bonds. A better way to determine your personal income needs for retirement is to look at your monthly expenses and your assets.
While Social Security income is a great tool when planning your retirement income strategy, this was never meant to be your only means of income. Social Security on average is intended to cover around 40% of your retirement income. Obviously, the rest of your income has to come from other sources, which can be found across a variety of financial vehicles and products. One of the best ways to discover which products and strategies work best for your personal needs is to speak with a seasoned financial professional who can help guide your retirement plan.
It’s never too early to begin planning for your retirement. You never know what the markets may do, and preparing for your retirement future may be able to set you up for success years down the road. Having a strategy in place can help plan for life’s unexpected moments that inevitably do come up. Don’t let yourself be fooled that the market will always remain where it is — start taking the necessary steps to prepare yourself now!
Don’t be fooled by what you’ve read on a blog or social media; sometimes, it’s just best to seek help from an experienced professional. If you’d like to learn more about retirement income planning, attend one of our financial classes to explore your options today!
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