Michael Foguth, co-author of “What You Don’t Know About Retirement Income Can Hurt You!” discusses the importance of retirement income for investors, retirees and pre-retirees.
Here’s an excerpt from the book by Michael:
“The goal we are addressing here is to keep your retirement income stream consistent even as your assets are decreasing because you are using them up. We have covered some of the basic dynamics at play in this process. Now, let’s get specific about the menu of tools at your disposal for hitting your target.
It is now time to define your objective. You have to figure out how much retirement income you will require and for how long you are likely to need it. To arrive at these estimates, you are going to reverse engineer your retirement income scenario.
The first step in this process is to calculate your probable life expectancy. Your family health history, personal health and social history along with various other stressors and influences all have bearing on the actuarial projections of your life span. As this can be a difficult batch of information to digest (after all, you are studying your own mortality), lean on your advisor for appropriate surveys and other tools to make certain that all necessary information is considered.”