Here’s how you generate a steady income for retirement. PennyGem’s Natasha Abellard has the story.
NATASHA ABELLARD: If retirement is on your mind, you're probably wondering how to generate a steady stream of income once that time rolls around. Because we all know that just because you stop working, it doesn't mean your expenses will go away. Nerd Wallet suggests several ways to create a stream of income during your retirement years.
First, when it comes to social security, you should maximize your checks by delaying the start of your payouts. While you can start benefiting from Social Security at age 62, waiting until 70 is a better move as this is when benefits max out. If social security doesn't fully cover your living expenses, consider options like a reverse mortgage to help you out.
A reverse mortgage is a loan that transfers a portion of your home equity into a monthly check. And while it might be tempting to place your money into safe investments, like bonds, certificate of deposits, or savings, this is not the best long term option. About 1/2 of your portfolio should be invested in stocks, which can produce more income over time. The balance also recommends systematic withdrawals from a well balanced portfolio, to help meet your income needs.