{"id":771,"date":"2010-07-20T11:10:52","date_gmt":"2010-07-20T16:10:52","guid":{"rendered":"http:\/\/www.billlosey.com\/articles\/protecting-your-individual-retirement-account.php"},"modified":"2010-07-20T11:10:52","modified_gmt":"2010-07-20T16:10:52","slug":"protecting-your-individual-retirement-account","status":"publish","type":"post","link":"https:\/\/billlosey.com\/knowledge-center\/protecting-your-individual-retirement-account\/","title":{"rendered":"Protecting Your Individual Retirement Account"},"content":{"rendered":"<p><strong>Question:  I will retire in 5 years.  How can I protect my money, both now and in the future?<\/strong><\/p>\n<p><strong>Answer: <\/strong> When you talk about \u201cprotection\u201d, I believe you mean principal protection.  However, when I hear the word protection, I believe that what you really want to know is how to grow and manage your nest egg so it can generate a steady stream of income in the future.<\/p>\n<p>Creating a steady stream of predictable income is easy.  You can work with your current investment custodian and have them pay you income on a pre-determined basis.  For example, many of my private clients take money two times per month to replicate their former biweekly paycheck.<\/p>\n<p>Creating sustainable income is harder since we don\u2019t know how long we\u2019ll live.  So you\u2019ll need to monitor your withdrawals at least annually.  Obviously, the less you take out, the lower inflation is, and the higher return you earn on your money, the longer it will last.  Conversely, the more money you take out, the higher inflation is, and the lower your return is, the shorter your nest egg will last.  Most experts agree that withdrawing 4% of your money every year beginning in year one and then increasing the amount of the withdrawal each year to account for inflation is a prudent strategy.<\/p>\n<p>Creating increasing income is vital to your retirement success because the cost of goods and services is always going up.  Even at a low inflation rate of 3%, you\u2019d need to double your income in approximately 20 years just to maintain the same standard of living you have today.  That\u2019s why it\u2019s so important to maintain at least some portion of your individual retirement account in the equity (stock) market.<\/p>\n<p><u><strong>Bill\u2019s Bottom-line:<\/strong><\/u> Past performance is no guarantee of future results, but as of now, the equity markets have been the only place that has consistently delivered returns above inflation over long periods of time.  To learn more, download a FREE report What Wall Street Doesn\u2019t Want You to Know, available at <a href=\"http:\/\/www.MyRetirementSuccess.com\">www.MyRetirementSuccess.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question: I will retire in 5 years. How can I protect my money, both now and in the future? Answer: When you talk about \u201cprotection\u201d, I believe you mean principal protection. However, when I hear the word protection, I believe [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-771","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=771"}],"version-history":[{"count":0,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/771\/revisions"}],"wp:attachment":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}