Multiply Your Monthly Income with the World’s First Online Dividend Forecaster


Re-Tweet
Share on Facebook
Share on Google+
Share on LinkedIn
DIVIDEND INVESTING, ETFS, RETIREMENT
 

Are you secure in retirement or will you be when you reach that age? Odds are that if you are a middle class wage earner, the answer is a scary NO. A recent Wall Street Journal article noted that 10,000 baby boomers turn 65 every day. On the subject of these people entering retirement the article said this:

“Most of the rest are unprepared. Fifty-four percent of households with middle incomes—ranging from around $48,000 to $95,000 a year—don’t have enough saved to maintain their quality of living in retirement, according to the Boston College Center for Retirement Research.”

A 54% chance of a financially challenged retirement just stinks! Once you leave the job with a paycheck, you must plan your finances to make what you have accumulated up until that time last the rest of your life.

It is truly a daunting task to manage your savings to both provide enough money to pay for your lifestyle in retirement and to make sure your money will last the rest of your life, which could be 35 or 40 years or longer.

There is no scarier scenario than the possibility of running out of money late into your retirement years. Just at the time when your expenses may be increasing to pay for the life changes that getting older my force upon us.

You may be surprised at the poor choices the planning options the financial services industry offers to retirees who have saved enough or close to enough, but need to that money to produce a strong rate of return that can be withdrawn to provide a retirement income.

If you have a big enough nest egg so that a 3% to 4% withdrawal rate will provide the income you want, the financial services industry can help you out. Keep in mind that level of withdrawal means a $30,000 to $40,000 retirement income from $1 million in savings. I don’t know about you, but to me $30k a year doesn’t feel like being a millionaire! Even with this low of a withdrawal rate a back testing of the traditional portfolio balanced between stocks and bonds has a 20% chance of running out of money in 30 years. That too is a scary statistic.

When I give investor conference presentations, I talk to investors about using a portfolio of higher yield stocks as the core of an investment portfolio. By higher I mean cash returns ranging from 5% into the teens.

Consider this scenario. If you have a portfolio with an average yield of 8%, you can withdraw 6% per year and never have to sell a share. You will even have cash earnings left over to reinvest and grow your future income potential.

Continue........

Wait, Before You Leave...