Compared to recent years, more Americans seem to be saving for their retirement. That being said, what they are investing just might not be enough to take care of even the basic expenses of living once they make the decision to go ahead and retire, says this recent study.
What can you do to find the money you need in retirement? Let’s take a look.
If, when you retire, you are age 62 or older and own your own home, you might consider taking out a reverse mortgage. This allows you to borrow against the equity of your home. You do have to pay the origination fees, but the loan itself isn’t to be repaid until either you move out or die. This makes it imperative that you discuss this option with your children before you do it so that there are no unpleasant surprises down the road. Other things that need to be paid for by you are the taxes on the property, insurance, and the upkeep of the home. You can get the loan paid to you as a lump sum, as a line of credit, or in a monthly stipend. If you have any more questions, check out the FAQs.
Cut Expenses or Increase Savings
Increasing your savings is a strategy that is quite simple, but not very popular. However, there are a few savings tips that can help without hurting too much. One of these is to cut the cord – with cable TV. Nowadays, that is even easier than ever. Why pay a huge cable bill for 100 channels that you don’t watch? You can easily watch all of your shows just by getting subscription services such as Hulu or Netflix. Even PBS has a program for you to watch all of their shows without needing cable to do it. Actually, most channels offer that.
Become a Trader
There are a lot of resources that can teach you how to become a trader, and once you have the ins and outs down, you can do it from anywhere. You will need to have just a bit of capital to use as your initial investment, but how little or how much is totally your call. One thing you need to remember is to research anything that you are thinking of buying into. Of course, that is always true with anything you want to invest in. This can be a great way to invest for your retirement while you are retired.
Scale the Expenses Down
Living a frugal lifestyle is not meant to be something that is easy. However, it can be terribly rewarding if you remain focuses only on those things that are the most important to you. Many people might think that we need to retain our lifelong habits of spending even after we retire. Yes, this can be a truth for quite a few people, but others try to redefine themselves when they retire and to do this, they might dramatically cut down what they spend. Retirement is a fantastic time to take stock of your life and what you have as well as defining exactly what you want. You just need to determine what it truly important to you, set your goals, and determine how to get what you really want.
You can do this by taking a look at what you currently spend on. Take a good look at your budget. You might come to find that those little things that don’t matter to you so much can actually add up to quite a bit each month.
After looking over the budget, cut your costs. Slash anything you can, be it a large or small amount. Get rid of all of those things that have no relevance on you or your top priorities.
You might also want to take a look at things like where you reside, what you do, and who you spend your time with. If any of these things do not correlate to your priorities, make some changes that might help you when it comes to having a life that is more meaningful while also saving you a bit of money.
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