Nothing exists in a vacuum, meaning that even if you’ve determined the best time and method of taking your Social Security benefits based on your age, objectives, and lifelong earnings, it won’t matter unless you properly coordinate your benefits with your overall retirement income plan. Most people agree that Social Security is not enough to live on in retirement; it needs to be supplemented with other sources of income. Therefore, it is essential to help ensure your other savings and investment vehicles are as reliable as Social Security and capable of meeting the same financial objective: providing income that you can’t outlive.
Risk Tolerance and Investing for Income
Risk tolerance is one of the most important ingredients in creating a retirement plan that’s right for you. That’s why understanding risk tolerance and how to accurately determine your own is so important. Some people are naturally wired to take risks. Others are wired to avoid risk as much as possible.
