Applying Farmers' Wise Rule To Your Retirement Strategy | Given ...

If you?ve been reading retirement articles a lot, you probably have read about the farmers? rule being considered when it comes to retirement planning. The rule is: ?You Plant Seeds In the Spring and ?Can? In the Fall, So You Can Eat ALL Winter!? The question is, how do you apply this ?wise? rule to your retirement strategy, e.g. choosing an annuity product? You?ll find out how below.

So the spring is over and you realize that already, also you need not a reminder that you are getting older. Surely, the farmers got this one right. When harvest time or the time to make your nest egg meet your needs comes, you have to safeguard your crop, protect it, and make it last as long as you can. This is what retirement income planning is focused on.

Not surprisingly, with that analogy in mind, a lot of people close or in their retirement living carry on and continue to plant as if it were spring for the reason that they do not have enough knowledge about the complex distinction between saving and investing. Which is truly a huge mistake.

The Difference Between Investing (Planting) and Saving (Canning)

Investing in the stock market is only for those people with money that can be exposed to risk and who currently have their cost of living covered by a particular revenue stream that they cannot outlive. Saving by using a ?personal pension? account is good for those who should put that guaranteed income source set up in order to meet their living expenses, which most of us can relate to.

So why do you need to know the huge difference between investing and saving? It?s because investing more and saving less, or the other way around, can be a dangerous thing especially if you?re a retiree or about to become one. You will find out for yourself as you identify the very important distinctions between ?return,? ?income,? and ?cash flow.? Each and every retiree really should be aware of the differences before making any investment decisions. It will help them identify what they should do with their money they count on all throguth their retirement living.

Other than knowing the differences between investing (planting) or saving (canning), it?s also important to know the following:

• how you can secure guaranteed earnings with annuity plans that you cannot outlive, in case you live till age 120 or more;
• how can you shell out money with greater confidence and not worry about running short during your retirement living;
• the big difference between 6 percent return (which is what many people unfortunately give attention to), 6 percent income, and 6 percent cash flow and which one will let you achieve a more happy and more comfortable retirement.

Failing to understand those essential concept could possibly reduce your retirement income unnecessarily. Act now, contact an annuity expert today!

Source: http://www.giventhebiz.com/applying-farmers-wise-rule-to-your-retirement-strategy

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