Millions of retired Americans rely on their Social Security benefits to take care of their bills during retirement. Considering that the average senior receives about $1,519 monthly in Social Security benefits, the money mostly covers essentials. But why focus only on Social Security when other income sources can pay you better in retirement? Here are three other income sources to consider. Retirement SavingsThe more money you have saved up to your 401(k) or IRA account, the more withdrawals you’ll be able to make and the more flexibility you’ll have. For instance, imagine having $750,000 saved up to your retirement account. That’s a lot of money, but it will only be attainable if you save consistently throughout the years. If you follow the 4% retirement withdrawal rule, that will give you $30,000 yearly or $2,500 monthly, which is $1,000 more than you’ll get with Social Security as an average wage earner. But can you manage to save $750,000 in the first place? If you start saving early, around age 25, you will have forty years to save until you reach age 65. If you save $315 monthly to your retirement account and deliver an average return of 7%, you will end up with an amount within the $750,000 range. That’s assuming you only save for forty years. If you retire later than age 65 or start saving earlier than age 25, you can end up with about forty-five years’ worth of savings or longer. Real EstateInvesting in real estate properties can be quite lucrative. Investing in the right income property can set you up to receive monthly rent that’s higher than the amount of Social Security benefits you’ll typically get. Of course, owning real estate property as a retiree can be quite risky. You can run into major repairs, high property taxes, and tenants who don’t pay their rent. Similarly, having the property vacant for a long time can also eat into your profits. However, if you buy the right property in the right area, you’ll find that the rental income you receive will cover your mortgage and any expenses that arise and provide you with money that exceeds your Social Security benefits. Earning From Small BusinessRetirement is a great time to invest in a small business. By starting a business, you’ll have something meaningful to do with your time, and it can also be beneficial from a tax standpoint. The business can even grow to provide you with enough funds that can match your Social Security earnings. While Social Security is a basic income in retirement, it shouldn’t be your only or primary income source. If you set yourself up with multiple income streams, you’ll have a more enjoyable retirement with fewer financial worries.
Contact Information:
Email: [email protected]
Phone: 8139269909
Bio:
For over 30-years Flavio “Joe” Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.
Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.
