With Americans becoming more aware of the need to take control of their retirement income the landscape is loaded with challenges. Creating a regular monthly paycheck for yourself from your assets is commonly referred to as unearned retirement income or income generation. While there are many obstacles and challenges in accomplishing this, I want to talk about five in this month’s issue of our Delta Insight Newsletter.

1. Studies show that fewer than 10% of near retirees (or retirees) have a written plan. While having a plan should sort of be a “No Brainer” it’s sad but true. A written plan that incorporates personal investment assets, qualified retirement plans, IRA’s, pension plans, social security, inheritance, etc, etc is the absolute foundation that must be laid. Such a written plan becomes the roadmap for the multiplicity of ongoing decisions that must be made to ensure success.
2. Most near retirees say that they are generally uneducated about the process of creating unearned income. As we all work hard for our money during working years some discover that working smarter is often the ingredient that gives them the edge. In the same way becoming smarter (more educated) on income generation is what will enable you to enjoy your retirement years with a regular paycheck. Be willing to spend both time and some money on the planning of your retirement income generation.
3. Overcome the fear of outliving your assets. The emotion of fear is one that is not only stress producing but can also be debilitating. As we all know (intellectually at least) nothing happens simply because we hope it will. Knowing your income needs in retirement and then creating a plan to produce that income should help to alieve much of the stress of outliving ones income.
4. Know where you stand at this time in your life. Just as a balance sheet is a snapshot of a company’s business at a given time, we need a snapshot of our personal financial/asset “business”. This is a prerequisite for developing a strategy to get where you need to be in the years ahead. One simply cannot get to a point where they need or want to be without first truly understanding and accepting the truth of where they are now.
5. While it’s good to have a target date for retirement, we must be prepared for that date to change (sometimes radically) if forced into early retirement by health issues, layoffs, etc. As I suddenly find myself in my late fifty’s I become increasingly aware that health, which for so long was somewhat taken for granted can no longer be. While living each day as an optimist I must also be a realist as to my future health and ability to produce earned income.

It’s been a great pleasure and wonderful adventure to help individuals and families realize their financial and retirement objectives. I urge you to give your income in retirement years the attention that it will take to achieve your goals. While you might in the present have to come to grips with some potentially painful truths of your situation, you will be pleased with your efforts in the future.

Please accept my best wishes as you seek to attain good fortunes during your retirement years.