Income investing in retirement doesn’t have to be complicated. Review some of the best investments for income in retirement, and explore the pros and cons of the most popular strategies in this video.
Things can seem different when you stop working because you’re responsible for creating income—and that’s intimidating. There are several views on where to invest money in retirement, and the right answer depends on your preferred strategy, among other things.
It’s hard for most people to “live off the interest,” so it’s best to be open to the idea of spending from your nest egg. But in reality, you might find that your assets grow over time. This can happen without any complicated investment strategies.
Of course, the amount you spend each year is critical. So, you’ll want a way to monitor and manage your level of spending over time.
You can also look at dividend investing or annuities for retirement income investment strategies. Those approaches have pros and cons (as with any strategy), and for many, they’re not a perfect fit. But they might be the right fit for you, so it’s important to understand how they work.
We’ll cover the basics here, and you’ll have a better understanding of what to do with your savings.
This video does not cover everything (would you really want it to be any longer?), and you can get more information from this article: https://www.approachfp.com/income-investing-in-retirement/. You'll still need to do more homework, of course.
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CHAPTERS 01:25 Can I Live Off the Interest? 06:01 Spending Down Assets 07:29 Total Return Investing 10:17 How Much Can You Spend? 19:13 Dividend Investing for Retirement Income 22:57 Income Annuities
Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.
IMPORTANT: You can lose money and/or run out of money with any strategy or investment vehicle. Insurance companies can go out of business, causing you to stop receiving income payments. Diversification does not eliminate the risk of loss. Markets might or might not recover quickly enough to keep your portfolio healthy. Triple-check everything in this video before making any decisions.
It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.
