Question: When the day comes for you to retire and you receive your last paycheck, what is your plan to create an income that will sustain your lifestyle? A better question might be: have you thought about it at all? Of all the problems you are facing, this may rank up there with some of the biggest. But if you have not spent any time thinking about it, I would venture an educated guess that the problem is not solved. So, I ask, how will you solve it? Will you have socked away large amounts of money that may potentially provide ample income? Will you rely on Social Security?
Perhaps you will consider a reverse mortgage. Maybe you will you own a diversified portfolio of bonds and dividend paying common stocks, annuities or income-producing real estate. Perhaps you will own a combination of all of these. What will you do to create an income stream that will provide for your needs?
This is one of the most important issues on which my advisory team and I focus. It is one thing to create healthy balances in a retirement plan over a working lifetime, but it is quite another to convert those assets into an income stream that has the ability to increase over time. The important point to keep in mind is that whatever solution you pursue, it will require much thought and planning. The answers will likely involve knowledge and expertise that you do not currently possess.