3 Steps to a Smart Retirement Income Plan
Do you know where you're going to get the money you need to live on in retirement? A retirement income plan can help ensure that you won't run out of money no matter how long you live. But to get this level of certainty, you need to base your plan on the three most important income factors.
Having multiple sources of income is always a good idea, but it's especially important in retirement. If you have just one source of income, you'll be in deep trouble if something happens to it. But if you have several different income streams, losing one may be no more than an inconvenience.
Many retirees count on just two sources of income: Social Security benefits and a retirement savings account such as an IRA or 401(k). That's a good start, but two sources of income is pretty minimal. What happens if the government suddenly cuts your Social Security benefits? Or what if there's a major stock market crash and your retirement savings suddenly lose half their value?
Source: Fool.com
