The three legged stool of retirement
Retirement is a very important phase in life. In this phase you most likely will be working significantly less or not all, and have time to spend doing the things that you love. This can be done with strong retirement planning. When retirement planning is neglected or ignored you will struggle financially or find yourself working much later in your life. Retirement is often described as a 3 legged stool, but for many people there is confusion about the way retirement is funded. Each person’s retirement funding may look a little different, but in general the following 3 items tend to be critical to making sure your retirement is well funded.
- Social Security
Social security is a policy that exists to provide support for many populations, among them retirees. Included in social security policies are healthcare and other types of care. Social security is a critical piece of funding your retirement. On average the social security payment across all populations is around $1700, but many retired people receive varying amounts based on different life factors. For the sake of our evaluation of the 3 legged stool model we will assume you are receiving the average amount. If we total the annual amount you receive it would be about $20,000. This will likely not coverage a mortgage, but it could cover partial rental payments, but will most likely cover grocery or…
