Retirement Planning: Lump Sum or Yearly Income

Everyone seems to have their own retirement strategy. While some people seem to be misinformed, personalized retirement plans are generally a good thing. Everyone’s life is different so it only makes sense that their retirement plan follows suit.

Yet at the same time, there are typically two distinct philosophies for retirement planning. These two philosophies aren’t anything new. While almost all employers have replaced pension plans with 401k or 403b investment accounts, even when pensions were popular, there was still a difference in how everyone approached retirement. The two predominant choices are and always have been: lump sum or yearly income.

While it is too simplistic to suggest that one approach is always “better” than the other, there are clear advantages and disadvantages to each retirement strategy. Each has its own risks. If you are trying to work out your retirement plan, you may be interested in the . . . → Read More: Retirement Planning: Lump Sum or Yearly Income

Choose Life or Savings During Retirement

Many prospective retirees focus most of their energy on saving alone. They worry about whether they have enough to retire on and whether or not they will be able to retire early or on-time, on-time or late. Very few actually consider how they would like to spend their money during their retirement which is actually just as important.

Sure, when beginning to plan for retirement, most incorporate living expenses, but few consider how they would like to spend their money to actually enjoy their retirement. Retirement shouldn’t be solely about having enough to get by – it should be about finally enjoying the life you worked so hard to save for.

So where is the balance? If you spend too much of your retirement on vacations or other activities early on, you may not have enough to cover the costs of high medical bills later on. However, if . . . → Read More: Choose Life or Savings During Retirement