The 'Magic Formula' for Retirement Income SecurityVernon said he recommends using the “magic formula” for retirement income security: I > E. That means making sure that your retirement income (I) exceeds your expenses (E). The Big CutThe Big Cut idea, by contrast, means looking at your largest expenses and seeing which ones you can either eliminate or reduce. Social Security Bridge PaymentsVernon also recommended a clever spending-reduction strategy he calls “setting up a Social Security bridge payment.” It’s a two-step process. This way, you’ll have more retirement income coming and won’t need to cut spending as much. And that enables you to delay your Social Security benefit, pay yourself from your savings what Social Security would have."

Source: Forbes September 18, 2020 19:07 UTC