Avoid These Retirement Killers At All Costs
It’s no secret that saving for a wealthy retirement is a daunting goal…
Most folks squirrel away what they can and hope it’ll be enough once its time.
But without a solid plan in place, it’s easy to fall into the worst retirement killing mistakes.
The cold fact about the markets is this — sometimes they come down.
During a recession, folks can lose as much as 57% of their wealth — like what happened in 2007.
Talk about a killing blow to your retirement plans!
The good news?
Once you know what you’re up against, you’ll be better equipped to reach your retirement goals!
Let’s get started.
Retirement Killer No. 1: Not Having an Unassailable Wealth Fortress
Sometimes investors can suffer from being too passive about their nest egg:
- When they ignore telltale warning signs that it may be time to cash out of certain positions…
- When they don’t hold enough recession-proof assets to get them through a pinch…
- Or when they don’t have a solid enough stream of retirement income to get by on during hard times!
But a market crash is just one of many things that eat up your wealth when you’re retired or preparing to retire.
Unexpected medical expenses, natural disasters, loss of a job or income… All of these events can severely harm your plans for the future.
And they’re more common than you think.
Finally, there’s inflation to think about too.
Inflation is the rate at which your purchasing power decreases. In other words…
As inflation grows, your savings shrink. That’s what happens when a country borrows way more money than it can ever pay back. The official number in 2018 is 2.9%, but there are reasons to believe the “real” rates are even higher.
That’s why most folks should make sure they’re taking action to save and invest enough of their wealth before they retire — and make sure they’re outearning the rate inflation takes away.
The good news is if you started too late or saved too little (like most Americans)… there are ways to catch up.
The best way to build an unassailable wealth fortress is to start saving up on “dry powder” NOW.
Retirement Killer No. 1 solved!
Retirement Killer No 2: Not Having Enough Sources of Income
It’s been said over and over: Millionaires have an average of seven different sources of income.
Even if you think you might be covered by Social Security or a pension down the line, it’s ALWAYS safer to have more.
Especially when you consider state pension funding is at a historic low and that Social Security is utterly unsustainable as it stands now.
Finally, if you read Retirement Killer No. 2, I told you about how inflation can eat at your wealth over time, making it important to earn MORE on your savings than inflation takes away.
Making sure your investments earn income is one of the best ways to beat inflation. Income is generally more reliable than capital gains and taxed at a lower rate.
So what are your options?
Well, you can either work more for more money…
Or you can make your money work for you!
That’s how income investing works: You leverage the wealth you have to provide income over time.
There are tons of avenues for investments to make you an income.
Popular examples are rental properties, bonds, peer-to-peer lending and my specialty — dividends.
Now, My Favorite Income Generator
Dividends are my favorite way to generate income because they’re usually a good sign of a company with a strong foundation.
Reliable dividend-paying companies might not be your ticket to fast riches, but they make for an excellent place to store your money and get paid for doing so.
Especially when dividends can pay MUCH more than the interest you gain for storing your money in a bank:
That’s why I love dividends.
And as I mentioned in Retirement Killer No. 1, we’re facing an unprecedented opportunity for select dividend-paying stocks.
After recent tax cuts, dividends could increase as profitable companies pass the savings onto their shareholders.
Making earning extra money all the easier.
Retirement Killers solved!
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch