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Americans are facing an urgent, but often overlooked need for passive income. Some have put this thought off until retirement. The big problem is that most never know when, and how soon they are really going to need it.
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By Mobile Home Investors Academy
Americans are facing an urgent, but often overlooked need for passive income. Some have put this thought off until retirement.
Via the Harvard Business Review professor Robert C. Merton has echoed the warning of a pending global retirement crisis. Specifically Merton says that income is the biggest challenge facing Americans in retirement. A big nest egg might sound great, but it will rapidly disappear, unless it is throwing off cash flow returns.
Only the top 10% of Americans have $250,000 or more saved for retirement The average 401k balance is around $90,000 Around half of Americans have no savings at all Even for the wealthy with $1M saved, withdrawing $100k per year would completely deplete their funds within 10 years. Yet, more and more Americans need to be prepared for a 30 plus year retirement.
Despite the fact that many Americans say they will just work until 70 or older in order to pay their way, the data shows most are retiring far earlier than planned. And they are not doing it because they believe they are financially prepared.
Rising living expenses which prevent savings A new era of zero or negative investment returns on stocks and bonds A recession forecast for 2016
The bottom line is that individuals need to setup and secure passive income streams in advance of retirement. Having a reliable stream of passive income coming in now means that you’ll be ready for retirement at any time. Every year that you don’t retire you can use that surplus income to expand investments and grow income streams, or spend it.
Take a look at this asset class and find out if it is a good match for you…