The New Rules of Retirement

Chapter 1The New Rules of Retirement

1. Keep my principal secure.
2. Pay me income.
3. Protect me from inflation.

These are the goals of more and more Americans age 40 and above. As Americans enter or approach their post-career years, their focus shifts from earning higher income and investment returns to preserving their hard-earned nest eggs. They want to receive steady cash flow from their nest eggs and control their expenses. They want to ensure they'll have enough income and assets to meet their lifetime goals.

Steady, secure income means financial independence. That's why interest in developing a continuing, stable stream of cash is booming.

Unfortunately, your job is becoming harder than ever. Your job is to establish and maintain financial security and independence in those post-career years. Not too many years ago, it was fairly easy to establish and maintain financial independence in retirement. Retirees had assistance and support from former employers and the government. Most of them had pensions. It also was fairly easy to convert a preretirement portfolio into a reliable stream of cash flow that helped replace your working years' income. Things are different now.

Much has changed and continues to change in the economy, the markets, government policies, and employer practices. The Federal Reserve has kept interest rates dirt low since 2008, and it is likely to be years before rates return to historic average levels. The government is cutting programs and increasing fees ...