Types of Retirement Income: Know Your Options Part 2
Welcome back to part 2 of our series on retirement income options. In part 1, we discussed key sources of retirement income, such as Social Security, personal savings, 401(k) plans, pensions, and IRAs.
In this installment, we’ll delve into more income sources that can enhance your financial security during retirement.
Tellico Lake Real Estate Market Watch
As of September 2023, homes in Loudon County took a median of 43 days to sell. Real estate data changes daily. Contact the Tellico Lake Home Team for help buying or selling homes near Tellico Lake.
Other Types of Retirement Income
Trust Distributions
If you have a trust established, it may provide a source of income during retirement. You can structure trusts in various ways to distribute income. Some trusts generate regular payouts, while others offer flexibility in withdrawals.
Spousal Support/Survivor’s Benefits
If you are married or have a dependent, consider the potential for spousal support or survivor’s benefits. These payments can come from various sources, such as life insurance policies, annuities, or Social Security.
Annuity Income
Annuities are financial products designed to provide a steady income stream in retirement. You can purchase annuities with a lump sum or make periodic contributions over time. Annuities can offer fixed or variable payouts, and some even provide options for inflation protection.
Rental Properties
Owning rental properties can be a source of passive income in retirement. Rental income can help cover your living expenses and provide a buffer against inflation. However, managing rental properties can be time-consuming. You’ll need to factor that in with your retirement plans.
Continued Work
Many retirees choose to continue working either part-time or in a different capacity. It not only provides additional income but also offers a sense of purpose and engagement. However, balancing work with your retirement goals and health is crucial.
Your Home
If you own your home, you can generate income in two ways. You could downsize and invest the remaining money to generate income.
Alternatively, you can opt for a reverse mortgage. It allows you to access your home’s equity through lump-sum payments or regular installments. A reverse mortgage doesn’t require repayment while you live in the home. However, you or your heirs must settle the debt upon your passing or if you choose to move.
Ready to secure your retirement?
Explore diverse income sources and consult experts to craft your financial plan. Your future self will thank you.
Tellico Lake Home Team
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