The 19 Sources of Retirement Income: Interest Income
Welcome to the Wealth under Pressure Podcast, in which John Smallwood, a certified financial planner, identifies key areas of pressure on your wealth and strategizes with you to reduce it.
In this episode, John returns to his series The 19 Sources of Retirement Income to highlight interest income and the part it can play in your retirement plan.
John is the author of 5 Ways Your Wealth is Under Attack. He has lectured extensively on financial planning and has received the Five StarSM Wealth Manager Award 6 years in a row.
John’s strength lies in his ability and commitment to continually improve the level and quality of the financial planning process. His dedication to his clients’ growth involves an evolving strategy that strives to meet the demands, desires, and needs of his clients in a continually 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 retirement income provide the defense your plan needs against unforeseen events and ensure 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 to serve you best whether you’re in your accumulation phase, your distribution phase, or your bequeathing phase.
For more, listen above. Then visit us at smallwoodassociates.com and click the “let’s get started” button, connect with us on social media, or call us at (800) 797-1000. Set up a free, no-obligation phone call. We call it the Wealth Curve Pressure Identifier. At the end of the call, you’ll know whether or not what we do is the right decision for your retirement plan.