The 19 Sources of Retirement Income: Interest Income
Welcome to the Wealth under Pressure Podcast. John Smallwood identifies key areas of pressure on your wealth and strategizes with you to reduce it.
In this episode, John continues to discuss the 19 Sources of Retirement Income. This time he’ll highlight interest income and the role it can play in your retirement plan.
John’s strength is his ability and commitment to improve the level and quality of the financial planning process.
His dedication to his clients’ growth involves an evolving strategy. His focus is to meet the demands, desires, and needs of his clients in a changing economic environment.
Don’t miss John’s takeaways:
- Interest income should be one of many income streams you maintain in retirement.
- Multiple sources of income provide the defense your plan needs against unforeseen events. This ensures you will be able to maintain your current standard of living.
- Interest is the payment you receive for the use of your money when you lend it to a bank, a corporation, a government, an individual, or a business.
- Interest can come from many different places. You could put money into a CD, a money market account, or bonds—to name a few. You could even act as a mortgage lender to your children and have them pay you interest as they repay the loan.
- Interest rates are always changing, and your plan has to account for those increases and decreases. (That’s also why you need redundant income streams.) Heed this cautionary tale: All through the 1980s interest rates were very high, and you could get amazing rates with CDs and bonds. But if that was your big idea for retirement planning, by now you’d be out of luck since interest rates have collapsed over the last 30 years.
- At Smallwood Wealth, we want you to accumulate as many of the 19 Sources of Retirement Income as you can. We want you to have the flexibility to be able to move your money around. Doing so will serve you best whether you’re in your accumulation phase, your distribution phase, or your bequeathing phase.
For more, listen above.
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