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You'll Never Run Out of Money in Retirement If You Do This

The biggest fear retirees have is that they'll run out of money. But if you plan your finances well and take a couple of simple steps, you can ensure that your money will last your entire lifetime.

In the following segment from their video guide to investment planning, Motley Fool director of investment planning Dan Caplinger talks with Fool markets/IP bureau chief Mike Klesta about how you can protect yourself from having your money run out in retirement. Dan notes that Social Security is a key element for most retirees, but that most companies have cut back or eliminated employee pensions that supplemented retirement income. General Motors (NYSE: GM  ) froze its pension plan for some white-collar workers back in 2012, while Bank of America (NYSE: BAC  ) made a similar move, choosing instead to boost 401(k) matching contributions on their employees' behalf. General Electric (NYSE: GE  ) and 3M (NYSE: MMM  ) have also closed their pension plans to new hires in recent years. Dan notes, however, that immediate annuities allow retirees to convert lump-sum savings into monthly income, with options to make that money last the rest of their lives and even rise with the cost of living. Dan concludes that a combination of different types of savings is the best way to ensure you'll have the money you need when you need it.

Make the most of Social Security
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Read/Post Comments (7) | Recommend This Article (52)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 22, 2014, at 3:17 PM, yaovk wrote:

    This article is not even worth the paper is printed on.

  • Report this Comment On February 22, 2014, at 6:41 PM, ghelmz21 wrote:

    The Motley no info total B.S.!

  • Report this Comment On February 22, 2014, at 7:14 PM, quasimodo007 wrote:

    what is sad is how the Evil GOp congress and their Mafia style Greedy Privilege CROOKS of wall street got saved while Most American lost almost everything and have to start from scratch while these Greedy GOp Privilege Crooks got huge Multi Millions dollars Bonuses and now they Get TAX FREE Paid Perks. and Get great TAX haven . no justice in America.

    look how the EVIL NSa spies and hacks on Poor Americans but never on the Rich.

    Evilness is Spreading in America. It's Even weak against Syrian war who CZAR Putin controls. CZAR Putin will control next Ukraine and next Kosovo. CZAR Putin is the Most Dangerous to US Not China

  • Report this Comment On February 22, 2014, at 10:03 PM, fredjohnson55343 wrote:

    An ad for overpriced annuities from insurance companies. Big whoop.

  • Report this Comment On February 23, 2014, at 1:42 AM, usisfubar wrote:

    The only way to never run out of money is to spend less than you make and save what ever little you can after taxes and bills.

  • Report this Comment On February 23, 2014, at 5:04 AM, EvilTwin2014 wrote:

    My take is what do you do about investing anything when you work for companies that refuse to pay you a fair wage to begin with??? After all I often find myself working for companies that pay me bottom of the barrel pay, yet tell me I have to do the job of people that make far more then I do as it is "in my job description"! I am fed up with pretending that my pay is good, while I make $7.50 an hour as a lowly assembly person, and yet told I have to do the work of a supervisor, test engineer, engineer, purchasing agent, and a machinist! I can't afford in most cases to invest a cent and struggle most of the time to stretch my take home pay to even get me home. Face it we can all pretend that people have disposible income, but there are many folks like myself that spend 40 plus hours a week working that still shop for food at the local food pantry hand outs that can just barely afford gasoline to get back to their dead end job next week! The last company I worked for paid me $10 an hour to do the work of a $65 an hour electrican, a $35 hour solid waste engineer, and a $50 an hour general contractor. While they were getting a great deal for them, how was this fair to me, even after I asked for a modest raise of $10 an hour??? Worst yet they called themselves "conservatives" and I know for a fact what they brought in every year which left me wondering why they couldn't afford to pay me slightly more. In fact the one owner of the three owner business had four homes in three different countries, while his sister owned five cars and had three homes as well. Further this with the fact that the father, and the head of the business was last valued at having $500 million dollars income a year, and owned at least six companies that I know of personally, as I was told to work the books a couple of times! I wasn't paid to be an accountant, and I still feel pretty cheated and exploited after being exposed to that information! In short I am getting to old to keep playing the games of corporate America,and feel that if I am going to do the job of somebody that makes more money then I should be making more money for the actual work I am doing, instead of being told "you are an asset", and given nothing more for my time and effort!

  • Report this Comment On February 23, 2014, at 7:33 AM, meatman wrote:

    geez you people get brainwashed!!! what about all the sports stars who make millions upon millions !! some don't do squat! some never went to college and incurred debt... but those evil people who did and now they are making all kinds of money,,, how dare they. They are the ones creating jobs! And I stand here with my hand out saying its not fair where is mine? teach your kids that... that is truly evil....don't teach them work hard ,go to school , be respectful. etc.... just give me what I want ... free , from the gov... PUUULEEESE.... and you want higher wages??? close the border

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Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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