Retirement income streams

**97guns** · 10-29-2013, 01:11 PM

ive been retired since 2009 with 1 income stream, real estate income. i dont have a 401K, no pension im banking on and i dont plan to collect SS, my retirement is self made and im the captain of the ship whether it sinks or sails

**Chris Leese** · 10-29-2013, 04:42 PM

I have a 401k, a roth 401k, traditional IRAs, a roth IRA, a self-directed IRA, life insurance, savings, my brokerage acct (investments in stocks and ETFs) and then some precious metals. I am currently learning about real estate investing and eventually hope to add that to the mix.

I have done some estate planning -- revocable living trust and a will. I have one daughter who is the main beneficiary (my mom too, if she is still alive when I go) but will also leave some to my church.

**feh** · 10-30-2013, 06:44 AM

Originally posted by bigdaddybus View Post

How many streams of income do you have (plan to have) in retirement? (pension, SS, roth IRA, savings, 401K, savings, dividend income, etc)

What are your goals in retirement and beyond? (estate/legacy planning)

I am curious how those in retirement or close to retirement are planning/utilizing their nest egg. As my wife and I are turning 40, it is something we have been discussing alot lately.

That's a big, vague question, so I'll provide a vague answer...

I'm planning on retiring at 50. No pensions, so we'll live off our taxable investments until we can access our 401K/IRAs in our 60s. Should be able to delay taking SS until 70.

Estate/legacy planning will be determined by how our investments do over the next 20-40 years.

**disneysteve** · 10-30-2013, 06:54 AM

We have money in a variety of places but one thing that I want to do as retirement nears is consolidate it as much as possible to make the draw down easier. I have 2 traditional IRA accounts (one was deductible, the other wasn't). I have a Roth IRA. I have a SEP-IRA. I have 3 non-retirement mutual fund accounts (3 different fund companies). My wife has 2 traditional IRAs, a Roth IRA, a 403b, and a 401k from former employers. Then there are various cash accounts, brokerage account, savings bonds, etc.

**Wino** · 10-30-2013, 07:35 AM

Originally posted by feh View Post

Should be able to delay taking SS until 70.

If you don't need to spend your SS, you'll (historically) do better taking SS as soon as it's available and putting it into an index fund rather than waiting. Plus, if you pass away, at least you got some of it. Basically, you should have the difference in payments accruing in your account every month, rather than coming from your SS check.

**feh** · 10-30-2013, 07:43 AM

Originally posted by Wino View Post

If you don't need to spend your SS, you'll (historically) do better taking SS as soon as it's available and putting it into an index fund rather than waiting. Plus, if you pass away, at least you got some of it. Basically, you should have the difference in payments accruing in your account every month, rather than coming from your SS check.

Whether to delay SS or not is a complicated question. It depends on many factors, such as estimated rate of return if you took bennies and invested them (as mentioned above), whether you're married or not, the difference in benefits between spouses, and more.

Ignoring the more subtle factors, for each year you wait, your benefit will increase 8%. I'd rather take that guaranteed 8% than hoping my investments would match it. I think (on average), if you live past 79, you come out ahead deferring.

Of course, some people don't have the choice because they need the money. Lots of threads over on bogleheads regarding this topic, for those that are interested.

**bigdaddybus** · 10-30-2013, 10:49 AM

Originally posted by 97guns View Post

ive been retired since 2009 with 1 income stream, real estate income. i dont have a 401K, no pension im banking on and i dont plan to collect SS, my retirement is self made and im the captain of the ship whether it sinks or sails

sounds pretty good.

Out of curiosity...
1. single?
2. what do you do with savings? brokerage account?
3. Are you a landlord then? isnt that a job?

**bigdaddybus** · 10-30-2013, 10:58 AM

Originally posted by disneysteve View Post

We have money in a variety of places but one thing that I want to do as retirement nears is consolidate it as much as possible to make the draw down easier. I have 2 traditional IRA accounts (one was deductible, the other wasn't). I have a Roth IRA. I have a SEP-IRA. I have 3 non-retirement mutual fund accounts (3 different fund companies). My wife has 2 traditional IRAs, a Roth IRA, a 403b, and a 401k from former employers. Then there are various cash accounts, brokerage account, savings bonds, etc.

We currently have 11 places that our savings/retirement money resides. I have thought before it would be nice to consilidate somewhat in retireent, but if my retirement life lasts 30+ years staying with a broad mix sounds good as well.

**bigdaddybus** · 10-30-2013, 11:06 AM

Originally posted by Wino View Post

If you don't need to spend your SS, you'll (historically) do better taking SS as soon as it's available and putting it into an index fund rather than waiting. Plus, if you pass away, at least you got some of it. Basically, you should have the difference in payments accruing in your account every month, rather than coming from your SS check.

That has been my thought on SS for my wife (preexisting medical condition), but I have never considered taking it right away for myself. I suppose it makes sense for both of us to take it as soon as we retire.
We both plan to retire at 62, we wont need to spend either of our SS incomes, but we do plan to be heavier spenders in the first 5-10 years of retirement, than the remainder......so I want to make sure I have "more than enough" when we leave our careers.

**97guns** · 10-30-2013, 12:37 PM

Originally posted by bigdaddybus View Post

sounds pretty good.

Out of curiosity...
1. single?
2. what do you do with savings? brokerage account?
3. Are you a landlord then? isnt that a job?

im single and all reserve funds go to precious metal every month. im a landlord with a property manager
that manages for 7% of the rents, i havn't even looked at my properties in over 8 months, checks
roll in like clockwork. not all peaches and cream though, just had a vacancy that i lost 3 weeks rent on,
also put in 3K to renovate but this was from a tenant that had been there for 4 years. if you call logging
onto my bank account to check the balance a job then a job it is.

**jIM_Ohio** · 10-30-2013, 04:41 PM

Originally Posted by feh View Post
Should be able to delay taking SS until 70.

Originally posted by Wino View Post

If you don't need to spend your SS, you'll (historically) do better taking SS as soon as it's available and putting it into an index fund rather than waiting. Plus, if you pass away, at least you got some of it. Basically, you should have the difference in payments accruing in your account every month, rather than coming from your SS check.

You're both right
Its called claim and suspend

Works great if both spouses worked while married and turn 62 at about the same time (both spouses have to be 62 for this to work)

At age 62 file SS papers to claim your benefit. Suspend receiving them immediately.
If you are 62 and your spouse has claimed a benefit (they can if they are also 62, see above), you can claim the spousal benefit (might be 50% of actual benefit)
Then let your own benefit grow until age 70, at which time you elect to take your whole benefit.
Your spouse could do this too, meaning at 62, each spouse is taking a reduced benefit on the other, while both benefits are being delayed until age 70.

It's called Claim and Suspend.

Retirement income streams