Generating a lasting income stream once you quit working takes a different set of skills than saving and investing.
Why generating reliable income in retirement is so tough
During the first half of your financial life, you collect your paycheck, figure out how much you can afford every month to contribute (wealth contribution) to your nest egg, and carefully contribute that amount into your 401(k) or some other retirement account (wealth accumulation). You’ll likely run into a few financial obstacles in the first half, such as buying a house and the expenses that come with having children. And as you move forward, you might choose to broaden the asset allocation in your portfolio. But even if you make an investment mistake early on, you’ll have a good chance of catching up, because you’ll still have that paycheck coming in.
Read more at Kiplinger