Jean Chatzky Urges Putting 25%-33% of Savings Into 'Forever Paycheck' Retirement Income
Updated
Updated · WPVI-TV · Oct 13
Jean Chatzky Urges Putting 25%-33% of Savings Into 'Forever Paycheck' Retirement Income
3 articles · Updated · WPVI-TV · Oct 13
Summary
Chatzky says retirees can reduce fears of outliving their money by directing about one-quarter to one-third of 401(k) or IRA savings into a lifelong income stream.
Her "Forever Paycheck" strategy offers two main paths: annuities for guaranteed lifetime payments, or investment-based income from CD ladders, Treasury or TIPS ladders, and dividend-paying stocks.
Chatzky frames the choice around risk tolerance, with insurance products aimed at people seeking more certainty and market-based approaches suited to those willing to accept more volatility.
She says planning should start in your 40s, with deeper research in your early 50s, while stressing that consistent saving still matters even in a weak economic climate.