Retirement Spending—Be Prepared to Cut Back or Get More Aggressive with Your Savings

Published on February 3, 2014

self-directed-ira-44Unless you’ve socked away many times your annual compensation level in retirement savings, don’t expect to keep your current spending levels after you retire—the income won’t be there for the long haul, especially as concerns about the viability of Social Security as a retirement benefit grow. (Of course, if you continue to work well into your golden years that’s another story; but if you want to take time to relax while your health is good and you are able, you need to be prepared to fund that retirement!)

Many people figure their retirement spending as a percentage of their current paychecks but this might not really work unless you modify your spending habits somewhat. It’s best to create a retirement budget from scratch and factor in the most necessary expenses you expect to have or those you feel will benefit you most during your retirement years. Work with those figures to adequately fund your retirement account or other investment you are making to secure a comfortable financial future.

Don’t forget that with a self-directed retirement plan, you can include many diverse types of investments in those accounts—for example, rental properties that will provide your self-directed IRA with a solid income stream. Who wouldn’t like that?

Many individuals avoid volatile investments as they grow older but the returns on the standbys—stocks, bonds, and mutual funds, or CDs—are lackluster at best these days. However, savvy investors, who might already be making alternative investments outside of their existing IRA, can include nontraditional assets in a self-directed retirement plan. If you already know and understand commodities, hedge funds, private placements, precious metals, real estate and lots more, building up retirement equity through self-direction can be a lucrative means to a comfortable retirement. Read up about it here or give us a call at (888) 857-8058 to discuss opening a self-directed IRA today.

Visit Our IRA Education Page Here: https://www.nextgenerationtrust.com/ira-education/

 

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