How to Generate Income in Retirement - The Myths

How to Generate Income in Retirement has the most common strategies for retiree income that you'll find from top financial publishers but...

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Since I’m always looking for investing resources and ides for my viewers, website readers and financial coaching clients, my search was how to generate income in retirement . These subpar retirement income strategies came from some of the top personal finance websites.
Create a cash reserve
Taking a pension
Delay Receiving Social Security was the best strategy but doesn’t really generate retirement income, it just changes the way it is distributed.
Put money in buckets
Manage spending
Protect against inflation
Minimize taxes
Withdrawals
Health savings account
These retiree income strategies may work but are problematic:
Get investment income by investing in dividend stocks paying 2.5 to 4% or funds. One referenced dividend income fund yielded 2.79% another 2.9%.
The best retirement income planning strategies came from Motley Fool. It was to work part time, buy rentals properties, or to buy a small business.
What works if you’re over 50? Here’s what worked for us after we retired at 50 or thereabout. It all took effort.
Creating 1 or more real income streams to supplement or delay making retirement withdrawals.
Building wealth by investing optimally in both traditional and also alternative investments

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Retire Certain is about our alternative retirement strategies from income generating assets and wealth building in our late 40s, 50s and 60s after stumbling into early retirement.

I am not trying to sell wealth management services. While I do hold a current AFC certification, my work is based on my own research and 4 decades of investing experiences in stocks, selling covered calls, real estate, online business, and tactical ETF portfolios.

Be sure to Subscribe, Click that little Bell after you subscribe so you know when I post a new video, and leave a comment or question...but only if you're nice:)

Nothing in this video is meant to be taken as personal financial advice.

Camille Gaines, AFC
Wealth coach
Accredited Financial Counselor

[ScottBruceman]

Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.

[khadijasajid]

I purchased my first home at the age of 21 for $87, 000 and sold it for $197, 000. My second home, acquired for $170, 000, was later sold for $320, 000, and my third property, purchased at $300, 000, fetched $589, 000, with buyers covering all closing costs and expenses. Not reaching a million before retirement feels like an unfulfilled goal.

[RoryCormac-tjyi]

If I understand correctly, my legal advisor David Marvin Willis, said the calculation uses 4% as the annual return leading up to financial independence. However, in reality, the stock market averages returns of 7-10%. This implies that you may not need to save as much monthly to reach $1.875 mil by the age of 45. The 4% rule becomes relevant when you reach $1.875 mil and you conservatively only withdraw 4% ($75k) annually from your portfolio. Referring to the Trinity study, it suggests that the likelihood of depleting your funds is low when adhering to a 4% annual withdrawal rate.

[curiosoneee]

So ! Are you going to tell us how to generate income ?

[RetireCertain]

Does it bother anyone else that these are the suggestions to generate income in retirement that most commonly presented to us?

[jonathanfoster]

I went the dividend route and while growth in net asset value is slower its also less volatile. That said I am receiving %10.5 in dividend income in my IRA

[larrygaines]

Great video and I totally agree Camille. Most of these retirement income ideas from others financial publications are comical.

[ChristopherLavender]

At the age of 23, I made my initial foray into homeownership, acquiring my first property for $90k and eventually selling it for $200, 000. Following that success, my second home, obtained at $180k later fetched $340k upon sale. The journey continued with my third property, initially purchased at $310k which commanded a remarkable $600k upon resale. The buyers generously covered all closing costs and expenses. While achieving a million before retirement remains an aspiration, each property transaction adds its unique chapter to my real estate journey.

[lauriekline]

I think I would rather spend $100, 000 and buy an investment property that could potentially generate $750 a month in rental income and still have inflation protection as well as principal preservation as opposed to an annuity. I have done this many times and this is very doable (at least it was a couple of years ago).

[aikirunner]

So you build your net worth over a working career, doesn’t it make sense that you draw on your net worth during retirement. After all you can’t spend it when you’re dead.

[jimclark]

Great Rant! Ha ha .... just have a pension!

[mitch-lifestyle]

Buy local businesses ? Ugh 😑… that’s probably the absolute worst advice for a 50+ year old retiree who actually wants to stay retired !!
For me, I prefer dividend stocks combined with covered call writing.

[tessjones]

If you bought income property before 2023 good. But these days if you buy it the taxes are huge and the insurance is huge. I have always had rentals. The Mexican Cartels threatened to kill me. I had to sell the good one. Now My
expenses in taxes and insurance are such that I pay more than the rentals cover!! I do not have a pension or
any other pay in! I am in my early 70s. I think I need to get a small job.

[francisebbecke]

"Think of it always, but speak a of it never." as the French say of uncomfortable truths. Go ahead and say it. You have to spend principle for most people.

[gregorywhem]

The secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.

[sharonbrown]

I love the video but please forgive me for saying you are not really giving any details about your investments.

[MC-gqms]

Hi Camille, I enjoy your videos as I’m trying to learn about stocks. My husband and I had mutual funds years ago, but he didn’t like the returns and got out. Since then, we’ve made some profits through land sales. Even though I’m 66 and have never invested in stocks, I’d like to try with a small amount of money and see what happens. Any thoughts for me?

[PCModelBuilder]

I did enjoy the video, the rant especially, but my take away was just ONE real suggestion which was to work part-time. I really don't need advice from a financial advisor to tell me that "working generates income". I would suggest that working pretty much is the antithesis to "retirement". Just sayin'. I was hoping to get some actual "advice" on "How to generate Income in Retirement". Oh well.