Achieving confidence and certainty in your financial planning can create well-deserved peace of mind. Getting your proverbial ducks in a row and preparing for both planned and surprise expenses can help you quiet your anxious thoughts. This will allow you to enjoy your retirement to the fullest, no matter how you may choose to spend it. However, to paraphrase John Steinbeck’s classic novel, “The best-laid plans of mice and men often go awry.” That is to say, even if your retirement is planned out to the letter, its success can still be impacted by factors beyond your control. The best example of this is the United States’ economy. Its far-reaching effects seem to impact people at every level, from the country’s workforce to the inheritances of their children to the retirements of their parents and grandparents.
With all of that said, how can you be proactive and plan for downturns in the market or volatile economic times? Fortunately, there are several ways.
Start a Variable Annuity
A variable annuity has the potential to benefit you during an uncertain market rather than in spite of one. According to Mark P. Cussen of Investopedia, “A variable annuity can be a way to profit from market volatility while earning a decent rate in a fixed account at the same time. But once the entire balance has been transferred into the market, you can continue to enhance your return by periodically rebalancing your portfolio.” This can help stabilize your initial investment while potentially increasing returns.
Diversify Your Portfolio
To continue the metaphor of “getting your ducks in a row,” it is also important not to keep all of your eggs in one basket. If the majority of your existing retirement income is disproportionately allocated to one or two key areas, you stand to take a sizable loss in the event of an economic nosedive. U.S. Bank recommends spreading your investments into three key areas: stocks, bonds, and cash.
Pursue a Reverse Mortgage
The first two steps are all well and good, but what if you simply don’t have the resources needed to make new investments? A Reverse Mortgage could be the perfect solution. Reverse Mortgages provide homeowners 62 and older an additional channel of retirement income in addition to those they already have in place. They do so by allowing them to access their home equity in the form of a non-recourse loan. This type of loan ensures that you cannot owe more on your house or property than it is worth. This is crucial for protecting yourself against an economic downturn; even if the housing market declines, you will not have to pay for the difference in home value. What’s more, you can use funds to create a valuable annuity, diversify your portfolio, or take any other action that better secure your retirement.
Would you like to learn more about safeguarding your retirement against an unpredictable economy with a Reverse Mortgage? Contact Retirement Home Equity Advisors today. We are a team of licensed specialists serving senior homeowners throughout the States of Arizona, California, and Colorado. We can help you strategically leverage your home equity to decrease risk and improve financial stability throughout your retirement.
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