5 Ways to Ensure Your Retirement Never Runs Dry

The Path to a Secure Retirement

Written by Brittany Stepniak
Posted April 29, 2013

When’s the last time you looked at your retirement account?

How much have you saved?

No matter how hard you’ve worked to put some cash away for the future... it won’t be enough.

Not when you consider the rapid currency debasement under way, courtesy of Helicopter Ben and his beloved printing press. And I wouldn't hold my breath for the government to improve "the system," either. They're too busy looking for ways to save a few bucks by reducing your benefits.

Time to Dig Deeper

I'm going to let you in on a little secret... There are plenty of alternative methods to help individuals like yourself accumulate a substantive retirement that'll provide you and your loved ones with everything you need, outside of having to depend on Social Security and your 401(k) to pad your nest egg.

Today I want to outline the five crucial elements of maintaining not only cash, but real value when it comes to your retirement savings.

1.) Cash Flow. Any stream of monthly income will be hugely helpful, regardless of how big your nest egg is initially. A recent report released by Standard & Poor's shows how timing plays a significant role. For example, if the market undergoes years of negative returns at the beginning of your retirement, you can go through your nest egg much faster than you anticipated because you'll be withdrawing money each year — even as your capital losses add up leaving you with less principal to earn interest on.

Instead of simply establishing a set amount of money you aspire to retire with, refocus some of your energy on creating a means of obtaining a reliable income every month.

Consider the following options:

  • Rental property

  • Dividends and interest

  • Starting your own business: you can sell it or remain active in it through retirement

  • Working a part-time job

Before you retire, make sure you sit down and consider how much you will need — realistically on a monthly basis. Use your current expenses as a starting point and make a plan.

To help you meet your monthly needs, you have the option to partner up with one of the world's biggest “landlords” and receive a check every month from its "tenants."

2.) Designate 3 Separate Retirement Investment Categories.

  • Short term: This is the account you use for present living. Keep liquid assets here that help you maintain your lifestyle. Cash items are good, but you may want to consider some income assets with limited risks as well.
  • Medium term: This is where you should be storing money required in seven to ten years' time. Ideally, your investments here should have potential for modest growth, for example: dividend stocks that offer high returns, fixed income investments, real estate, or other alternative investments like artwork fall into this category.
  • Long term: If you manage your money wisely, you shouldn't need to access this money until after the ten-year mark. Therefore, this is where you really want to focus on growth, so riskier assets are okay.

3.) Move Your Assets Around. When you think you need more money for present-day living, you have the option of selling some of the solid assets from the “medium-term” category so that you can put something more liquid to beef up your “short-term” money pile.

Additionally, you may want to reimburse the money in your “medium-term” portion of your portfolio by selling some of the riskier assets in the third tier. Of course, you may not feel comfortable removing assets from either the second or third tier unless there is an emergency situation... and that's fine. Just be sure to establish a system and a method to keep you on track with your short-term and long-term goals.

4.) Consider a GOLD IRA. Times are tough. People are panicking. Due to hyperinflation fears, Americans are no longer confident that their hard-earned money will help get them through their retirement years. Many respectable financial experts are even predicting the complete collapse of the dollar.

In fact, the dollar has lost roughly 97% of its value since it first came into circulation 100 years ago...

dollar value

If you're feeling trapped under the weight of an uncertain retirement fund, you should seriously consider transferring your traditional IRA funds into a GOLD IRA. In 2007 the IRA quietly opened a loophole permitting a 100% tax-free Gold IRA rollover. The Gold IRA is an option for self-reliant investors who don't want to leave the future of their wealth in others' sticky fingers.

5.) Alternative Investments. Silver and gold aren't the only reputable alternative investments out there. They might be the most popular choices, but don't let the plethora of other advantageous mining minerals and metals fly under your radar...

Graphene, rare earths, diamonds, platinum, palladium, and copper are feasible options as well.

Aside from these elements, novelties like rare books, art, and wine also help diversify a portfolio. Whatever alternative investments you choose, do not skimp on due diligence. The potential for regal rewards is out there in some pretty obscure places, but you can't invest in those hidden gems without doing your homework.

At the end of the day, your investments should line up uniquely with your present and future goals; not what the government or anyone else has 'planned' for you...

Time is Running Out

Keep in mind that planning for your retirement is one of your most important individual responsibilities.

And neither the federal government nor the Federal Reserve are making it any easier on you...

With 10,000 baby boomers retiring every day (for the next two decades, at least), we're in the midst of a demographic nightmare — and a tensely competitive financial market: Pensions are disappearing. Social Security is on its last breath. Retirees who counted on their homes as their retirement fund (these same homes then lost hundreds of thousands in value after the housing crisis) are up a creek without a paddle.

The truth is most baby boomers underestimated the ever-worsening conditions in their financial outlooks. Here are a few more concerning statistics regarding the looming retirement crisis:

  • Nearly 3 out of 4 people claim Social Security benefits as soon as they're eligible, at age 62. That locks them in at a much lower amount than they would have received if they'd waited.

  • Nearly two in three people age 55 to 64 had a mortgage in 2007, with a median debt of $85,000.

  • Health care expenses are soaring, and retiree benefits are declining. It's nearly impossible to predict how much money you'll need to cover out-of-pocket medical costs.

  • An average 55-year-old man with standard drug expenses requires roughly $187,000 just to cover future medical costs.

  • Baby boomers are finding it necessary to work longer than previous generations, but unemployment is near 10% Many have lost their jobs and can't find new ones.

To be frank with you, there is no more time for poor planning and procrastination...

The time to revamp and secure your retirement portfolio is now. And remember, there is no "magic number" so quit worrying and just start planning.

Farewell for now,

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Brittany Stepniak for Outsider Club

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