The Importance of Diversifying Retirement Income Sources
Friday, 15 March 2024, 12:08
Diversifying Retirement Income
Retirees often experience a financial shortfall between Social Security benefits and expenses.
Social Security Background
- Established by President Roosevelt, Social Security is a vital program for many Americans.
- Benefits of long-term Social Security contributions ensure guaranteed income for retirees.
Shortcomings of Solely Reliant on Social Security
- Shortfall: Social Security may not fully cover retirement expenses for many individuals.
- Limitations: Contents of Social Security benefits may not align with required retirement income.
Importance of Diversification
- Supplemental Income: Using Social Security as supplementary income alongside retirement accounts and brokerage accounts can enhance financial security.
- Retirement Account Options: Consider traditional IRAs and Roth IRAs for added benefits beyond 401(k)s.
Ensure financial preparedness for retirement by diversifying income sources.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.