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Guide to Retirement Income

Guide to Retirement Income

It is recommended that retirement income planning include a myriad
of income opportunities, in case an investment should fail or in case
circumstances should change. Retirement income planning is best
accomplished with the advice of a professional.
Retirement
income can include traditional forms of income, such as social
security. Social security is funded through taxes collected through
FICA. These taxes are collected throughout an individuals working life
and their employer matches their contribution. When an individual
retires, those contributions are calculated to allow for a monthly form
of retirement income.
Retirement income may also
include pension plans which were in place at the workers last employer.
Pension plans may include contributions from the employer and the
employee, to allow for an income after retirement.
401K
plans are another possible form of retirement income. Each year, an
employee is allowed to contribute a certain sum to their 401K plan.
Those contributions are usually made pre tax, to allow the employee to
get the maximum benefit from their contributions. Employers may match
the contribution up to a certain amount.
Retirement
income may also include investments, such as rental properties or
stocks. However, some of the investments can be risky and for that
reason, many individuals have more than one retirement plans in place
to protect their financial interests. For example, stocks may lose a
significant amount of value in just one day, causing a great financial
loss to stock holders. 

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