Myth 3: I Can’t Make and Save More Money Without Working
Think you need to maintain a part-time job or rely on another source of income to build up that retirement fund? Think again. You could buy a Multi-Year Guaranteed Annuity (MYGA) that will earn you a guaranteed amount of compound interest for a certain number of years. Jonathan Clements, author of the “Jonathan Clements Money Guide 2015,” tells The Wall Street Journal retirees should, “consider making a series of smaller annuity purchases over the course of five or 10 years — which you can stop if your health deteriorates. This will also allow you to spread your purchases among multiple insurers, so you won’t be left in a lurch if any one insurer gets in financial trouble.”
You could buy a 5-year MYGA, for example, for a lump sum payment of $75,000 that’s currently sitting in a low-interest savings account, to guarantee a steady stream of income for the next five years. This would help you build up your savings rapidly — and without having to clock in more work hours.