Baby Boomers, who are considering retiring should take a lesson from Bill Fisher. Bill was a Kansas City native, who started from scratch investing at age 72, and over the next 18 years was able to accumulate a net worth of one million dollars. Bill was able to do this because he continued to work until 84 at his entry level job and he didn’t take his Social Security until he was 70. I call Bill’s retirement program the 70/70 Retirement Program.

The first part of the 70/70 Retirement Program involves working until at least 70 years old. A study from the Center for Retirement Research at Boston College shows that if all the Baby Boomer generation were to retire at 62 years old, 84% would be in jeopardy of running out of money during their retirement years. Furthermore, the study indicated that if these Baby Boomers waited until 66 years old to retire, 50% would still be in jeopardy of running out of money. However, if the Boomer group worked until 70 before taking their retirement, only 14% would still be in the group that could run out of money in retirement. It becomes fairly obvious that continuing to work until 70 leads to a more secure and rewarding retirement.

The second part of the 70/70 Retirement Program focuses on waiting until 70 years old to take your Social Security. Bill Fisher waited until 70 to take his Social Security and it meant a difference of an additional $2200. per month. If Bill would have taken his Social Security at 62, he would have received $1100. per month. Instead, Bill waited until 70 and received $3300. per month.

Bill lived to be 93 years old. He earned a total of $910,000. over the lifetime of his Social Security payments. If he had taken his Social Security at 62, he would have earned only $405,000. over his lifetime, which is a difference of over $500,000. in additional income during Bill’s retirement years. What is also amazing is that the breakeven point to where Bill started making more money was only 48 months. In other words, Bill caught up to the 62 retirement option in 48 months or when he was 74 years old. Every month after that, Bill made $2200. more each month. This was additional found money that Bill could use to invest in stocks, bonds and residential real estate.

The 70/70 Retirement Program is easy to follow. You should plan on working until you are 70 years old and you should wait to take your Social Security until you are 70 years old. This will lead to a more secure and rewarding retirement for you and your family.

Source by Michael R. Burns