It's All About The Income: The Simple System for a Big Retirement

By Michael Lynch

Wondering if your retirement income will last as long as you need it to?

Americans today face retirement with a mix of hope and trepidation. Hope—that their health will hold out long enough to let them do what they want for decades. And trepidation—that they might not have enough wealth to fund it.

But creating a viable, sustainable retirement plan is easier than you think. In It's All About the Income, award-winning financial planner and bestselling author Michael Lynch lays out a simple, straightforward system for determining when you really have enough money to call it quits. Learn how to turn those savings into a steady stream of reliable, inflation-adjusted income you can count on for life, and get ready to enjoy a long, healthy retirement on your own terms.

• Language: English
• Publisher: BookBaby
• Release date: May 31, 2022
• ISBN: 9781544530284

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copyright ©

2022

michael lynch

All rights reserved.

it’s all about the income

The Simple System for a Big Retirement

isbn

978-1-5445-3026-0 Hardcover

978-1-5445-3027-7 Paperback

978-1-5445-3028-4 Ebook

Contents

Disclaimer

Foreword

Introduction

The Paradox of Retirement Income Planning

Safety First!

Getting Risk Right

Two Out of Three Ain’t Bad

Win by Winning

How Long for the Rebound?

Building Blocks of Success

Assess Your Needs and Fix Your Target

The System Is the Solution

Let’s Flex the Plan

Let’s Add a Pension

Big Income Needs

Retirement Income for the Modern World

Acknowledgments

Disclaimer

This book is meant for educational purposes only. It’s not intended to be personal financial advice for the simple reason that all situations are unique, and it is not written for you personally.

Michael Lynch is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. 6 Corporate Drive, Shelton, CT 06484. Telephone [phone].

Representatives do not provide tax and/or legal advice. Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax, or accounting advice. You should confer with qualified legal, tax, and accounting advisors as appropriate.

All opinions expressed in this book are solely my opinions and do not reflect the opinions of my respective parent companies or affiliates or the companies with which I am affiliated.

Investments or strategies mentioned in this book may not be suitable for you, and you should make your own independent decision about them. This material does not take into account your particular investment objectives, financial situation, or needs and is not intended as recommendations appropriate for you. You should strongly consider seeking advice from your own investment advisor.

To my clients, each of you, who’ve let me share

your life’s journey and taught me how to turn

assets into income amid the turbulence

that this world creates.

Foreword

You’ve spent your entire life living right, working hard, saving through your employer plan, and perhaps even saving a bit in a Roth or taxable investment account. When you started, retirement was a distant goal, a vague concept. Now it’s an approaching reality. Your gut tells you that you have enough money to retire, but your head is not quite sure.

You hear from some friends that you need $1 million and from others that $500,000 will get the job done. Prior to COVID-19, Bob at the office was incessantly fretting—bragging, really—that his $2 million stash wasn’t enough.

One big question you ask yourself: Do I have enough?

This book will provide you with the tools and know-how to answer this question definitively.

But that’s not why I wrote it.

Once you have enough, then what? Assets are fun to look at, play with, and brag about, but we live on income.

I wrote this book based on twenty years of practical experience helping hundreds of Americans turn their assets into sustainable real income. This is where the action is and where honest mistakes—both conceptual and practical—can cost you dearly. This book will teach you how to avoid these mistakes.

There are many bad choices you can make in turning your assets into income.

The first is spending too much and running out of money before you run out of breath. This terrifies many.

As with many tradeoffs in life, reducing one risk means exacerbating another. For your retirement planning, that’s the risk entailed in not spending your money, not taking the vacations you want, and not purchasing the cars, toys, boats, or experiences you desire. Eventually, you will either get sick and die or, if you’re lucky, simply die.

In the first instance, your diligence will feed the medical establishment, paying rent in the wrong kind of hotel. You should have taken those vacations; the food and lodging were better.

In the second scenario of sudden death, your parsimony will enrich your children, nieces and nephews, or some charity.

Either you take vacations or your children will!

But even this is not the big mistake I see destroying retirements.

The big mistake is contracting principal myopia, a common disease that infects Americans as they approach retirement. This disease causes investors and some advisors to focus exclusively on the risk of seeing the paper value of principal drop, if only for a month, quarter, or year. The reaction is to transfer to safe investments—anything with a fixed return: CDs, government bonds, bond-based mutual funds, fixed annuities. The result can be real financial pain, as you will soon see.

Relying on fixed assets in a world of increasing prices, if you’re lucky enough to live a long life, is a path to certain misery.

I wrote this book to give you a systematic antidote to this terrible curse. Enjoy and profit from it.

Michael Lynch CFP®

Introduction

When the COVID-19 crash came hard and fast in March 2020, the financial press reacted on cue. Coronavirus Shock Is Destroying Americans’ Retirement Dreams, blared a representative late-March headline in Bloomberg Businessweek. The relentless narrative: devastated stock prices would dash diligently pursued dreams of retirement.

As I write in November of the same year, these articles have not aged well. They rarely do. As is often