Are you headed for the future you want? Your retirement years should be the best years of your life. You’ve worked hard to be where you are, and you deserve a rewarding future with wonderful experiences. The problem is — you are not sure that you have enough to retire. At Miramontes Capital, we’ve had the privilege of guiding thousands of working professionals into retirement. We understand your concerns. Retire with 500k in the bank. Retiring with 500k is a common concern for most Americans. While having these substantial retirement savings is a great start, there are several other factors that need to be included in your retirement plan.

Learn How to Optimize Your Social Security Strategy to Avoid $110,000 in Lost Income

Sources of Income. So, you have 500k which is great! However, the key to ensuring a successful retirement is having a steady income. Here are examples of sources of income in retirement:

Social Security – Every person’s situation is different. When you should take Social Security is different then another person. Work with a financial advisor who can help you determine the right time for you to take social security so you can maximize its benefits.

Pension – Some employees are fortunate to work for companies that provide pensions. Typically, the company provides options of a lump sum, annuitized monthly payments, or a hybrid of the two. Work with a financial advisor to determine the best option for you to take.

IRA – As you invest your retirement savings it is important that your portfolio is set up correctly, so you
are not selling shares each month. Assuming your advisor does their job, the portfolio should generate enough income through dividends and interest to help cover your expenses. If you sell shares to get more income you will deplete your portfolio and run out of money. With less shares, it will continue to generate less dividends and interest.

Home Equity – If you have equity in your home, consider downsizing.

Real Estate – If you own a second property this can be a good source of income. As retirees age, sometimes they are tired of the 4 T’s: Tax, Trash, Tenants, and Toilets. If they choose to sell the property, they have options.

Annuities – These can be a good steady source of income. Annuities are not for everyone. Also, all annuities are not created equal.

Part-time work or consulting – Many retirees decide to work part-time or consult not out of necessity but because of boredom. For those that need a little extra income, it is always an option.

Lower Your expenses: Lowering your expenses may seem easy, however, for most retirees it isn’t! This is because your schedule that was once occupied from 8-5 is no longer there. Now those hours are filled with daily outings with friends, spouse, or family members.

So, can you actually retire with only 500k? Yes. However, to have a successful retirement we encourage you to start with a retirement plan. Make sure to incorporate the strategies we have included along and include your future goals and needs. If you are still unsure and want to review your financial expenses do not hesitate to give us a call.