As we all get older and experience the ups and downs of the economy, we worry about job safety. In this fast paced world, the age of the 30 year career and gold watch and pension has gone out the window. What will the future look like? If we are dependent on social security alone, it is a dismal picture. A life after a glowing career that ends in poverty isn’t very attractive and the 7 figure next egg to replace lost income seems out of reach. That’s when I get these comments:
I will work until I die.
I can always find a job.
I will probably get a disease and die before I retire.
My kids will help me out financially.
These are all fear based comments that don’t really address the issue. There is a collective consciousness that work equals income. Work does equal income but we can also get income from other sources and this is undervalued when we review all of our potential sources of income as wage replacement. Take a look at these income producing income sources that aren’t earned income:
Dividend and capital gain income
401K lifetime distribution income
IRA distribution income
Social security income
Income from a reverse mortgage
Income from treasury or other bond income
We need to look more at these unearned sources of income for our future. The reality is no matter how much we like to work, we may not be able to in the future or our job skills will no longer be needed or the jobs that we enjoy won’t exist anymore.
A plan of looking at a balance of earned and unearned income sources is more realistic that hoping that our job will be around till we die. Review and concentrate on what sources of unearned income you can increase to supplement job or social security income in the future. Then you won’t have to depend on a job for your sole source of income and that can be a very liberating feeling.
The July issue of Mindful Money Magazine is out and we discuss how to accumulate unearned income in a portfolio. You can subscribe and get a trial issue and you can cancel at any time.