Retirement Plans Must Change


While playing on the internet today, I went to a site that was designed to calculate my life expectancy.  I was excited to see that my life expectancy is bout 95-105.  I Googled this and completed several other online surveys.  I found the numbers to be pretty consistent.  At first, I was very happy to see that the lifestyle I lead is healthy, with managed stress, good relationships, and minimal indulgence in vices.  However, when I took some time to seriously think about my quality of life in my later years,  I got a little stressed.  I plan to retire from full time career path work in my early fifties.  I then plan to work part-time and live off my investments.  When I do the simple math, I will be dependent on my savings and investments for more than half of my life.  I truly get that retirement plans are going to have to change.  More than fifty years is  just too long to expect to live off my savings even with social security.  I am sure Americans are going to have to create portfolio income and start a small business on the internet if they want to retire with dignity.


Many different  types of mutual funds, closed end funds and bond funds exist now that pay monthly dividends.  These funds are designed to take advantage of current tax law which only taxes dividends at 15%.   Many of these funds announce the amount of the dividends and their dates of payment up to three months in advance.  This certainly increases investor confidence in the funds.  The funds can pay from 5% to 20% annually with a monthly dividend  payout.  It is my opinion, Americans need to increase their holdings of these types of funds outside of a retirement plan every month.  The funds provide regular income that can be used to eliminate debt, offset living expenses, or used to invest in your happiness!


I suggest you sit down and do the math yourself.  If you invested $100,000 into these income funds over a thirty year working career, your income would be between 5,000 to 20,000 annually.  This is likely more per month than social security will pay you.  Having a portfolio income could double your standard of living.  It could also significantly increase the lifespan of your deferred compensation retirement plans.  If you only need to take half as much out of your 401k plan, I am confident it will last much longer.  Regular monthly income is much more important than the current amount of press it gets.  Take some time today to investigate high yielding funds that are in the market place.  Building up a portfolio income would improve your current standard of living and increase you future standard of living.  


The tax laws in this country are written to favor small business.  It is impossible to say that you are an efficient user of capital if you do not own at least one business entity.  Business are legally allowed to deduct their expense and pay for them with before tax dollars.  To the average American this means, you could be deducting  the cost of your cell phone, computer, ipad, travel expenses, meals and entertainment, accounting expenses, legal expenses, office supplies, parties, monthly internet fees, education cost, and so much more.  I would suggest that you start out with a basic manual labor business or do more of what you do for a living on the side as an independent contractor.


The next logical step would be to start writing for an internet publishing or shared revenue site like Infobarrel.  The learning curve can be steep for these article writing sites, but the rewards can be great.  Investing some of your time, energy, and creativity can yield a nice income.  Working with and getting involved in these sites can also increase your business internet knowledge.  Most people start out writing for a shared platform, learn the ropes, and then branch out to create their own websites.


Creating your own websites is where the real money starts to flow.  There are many more opportunities than people are willing to recognize at this time.  People can create nitch sites and then figure out ways to monitize the sites.  Building relationships online and social media are some of the best ways to drive traffic to your own internet sites.  The major investments are your time, energy and creativity.  You can start an internet business with little or no capital.  The only thing you have to loose is your time!


In summary, we are all living longer lives.  There is is a huge focus on  pushing us to be more heathy, productive, and active.  Just because we are going to live longer does not mean we should plan to subject ourselves to more stressful career path work.  Using your capital to purchase income funds and creating internet bases business web sites are two ways to build a  personal base income that will lower your stress level and potentially give you access to your creativity.  Follow your dreams and create something uniquely yours.  Do not ever allow yourself to become completely dependent on an earned income from a job as that old lifestyle will suck the life and energy out of you.  Renew or give birth to you entrepreneurial spirit so you can access your creativity.  Once accessed, develop it,  and finally monitize it.  This is the path to freedom and happiness.  Having income from multiple sources will do nothing but enhance your later years and give you more capital to reduce debt when you are younger.