Use Tom’s Free Retirement Income Builder Tool!
Transcript:
Katie Nealis:
What are the best steps to get income for my retirement?
Tom Vaughan:
Oh, okay. That’s a good question. It’s the key aspect you know, I remember, you know, a client one time said, I want to, you know, go to school for 25 years work for 25 years and be retired for 25 years, I was his big goal. So, but actually, retirement is longer and longer and longer, you know, because life expectancies are getting longer. And so you know, you got to have money coming in to some form or fashion to pay your bills, you know, almost no matter who you are, and there’s got to be something there. So, income generation is really, really critical. Actually, let me share something here, let me find, hang on a second, and I’ll share it, I’m sure it’s something on our website that you might be able to go look at yourself to. So this is our red, red site for retirement capital strategies, you go to this helping you retire. And in here, we have this thing called the retirement income builder. And so what I’m trying to do here is just kind of For starters, identify every possible place that you could be generating income for your retirement.
So stock and bond investments, right, savings and CDs and the interest that you get off of that, annuities, there’s lots of different versions of those, those are possibilities, alternative investments, like commodities, and you know, those types of things. Of course, Social Security. Now, this is a really big area, you know, how do you maximize your social security? And there’s a lot of room for planning in this particular area, pension, same thing? You know, do you have a pension? How do you maximize that pension? Which option should you choose? Are you a landlord, you know, so in other words, you get rent? Do you want to get rent? Is that some place you’d like to go during your retirement? Or are you investing in mortgages, so this is where you’re lending somebody against their home, you know, and you earn interest on those will use your home equity in your retirement. So I have no light clients in 26 states outside of California now, partly because people have sold their houses here and bought some place less expensive. And they’ve kind of captured that differential. And they’re investing that usually in the stock and bond area.
You can also look at reverse mortgages, most of the times it’s not the best concept, but it’s not a terrible thing, if it’s the only one you got. But home equity is definitely something to look at. And in business or work, an awful lot of my retired clients have continued to consult or started small businesses, and they’re generating income there. So I think Well, for starters, you kind of want to take a look at this, you know, retirement income builder concept, and look at all of the different areas and figure out you know, which ones you really want, you know, where you’d want to go with those, and then you know, how to make them work for you, you know, in a really good way. So for example, this is one of the biggest areas where we see income generation stock and bond investments. And what we do is what’s called a systematic withdrawal.
So we’ll create a balanced portfolio, let’s say, a 60/40, portfolio, whatever it is, and then we’ll have a piece that’s in the money market, and we have money coming out every month, that money market, when it gets too low, then we rebalance that. And so we’re kind of relying on the interest and dividends and the growth of that overall portfolio to support that distribution. We’ve actually been doing that for 35 years, and it’s been quite successful. And so, you know, every one of these is different things. But you definitely want to try to maximize your potential here, even if you don’t think you need it. Because in case you do, you know, at some point in time, it might be kind of difficult to, you know, really get to a spot where you can, you know, make sure that you have enough income. And that’s looking at that wheel and figuring out all of the different ways that you can maximize income out of that wheel that in retirement income builder program is very, very powerful.
Easan Arulanantham:
So do a lot of people like Ari, when they hit retirement? Do they have a lot of these things? Or is it too late to try and add a different income stream when you hit retirement age?
Tom Vaughan:
Now, that’s kind of the beauty of it, whether you’re 20 or 80. For the most part, all of those areas that we talked about, you know, stocks and bonds, CDs, annuities, alternate investments, and I’ll maybe you know, when you’re at, you don’t want to go running out buying rental properties that you’ve never done before, you know, or something along those lines that are some criteria there. But now, I would say age isn’t so much of an issue, it tends to be more just personality pieces. I got people that love rentals, I got people that would never do you know, that’s just something that you’d kind of deal with. You know, the annuity area is so wide open, there’s so many different options. Some of them are probably really good for certain situations. Some are really bad. So you have to be just, you know, know what you’re talking about and know what you’re dealing there. But no, I i think you know, you could do any of those, even if you’re 20 you know, you can start picking now. Usually there’s a limited resource, you don’t have all the money in the world to go after every single area. So you probably want to build up you know, in certain areas first, and as those get bigger, maybe diversify into some of these other income production areas.
But really, really smart retirees have quite a few different possible areas that they’re going to get income from. And they just, you know, because that’s so security, maybe they got a little pension. Maybe they wrote a book and they’re getting royalties. I mean, it’s just amazing, you know, all the different ways that people can generate income, and I really like a diversified income plan as a whole. I think it’s very, really robust.