The years leading up to your retirement can be an exciting time. You are reaching the home stretch of your working life, with freedom and relaxation drawing nearer upon the horizon. However, these years can also be nerve-wracking and tense. As you begin to work out the particulars of your finances, your retirement may start to look less abundant than you had imagined. As reality sets in, you may even start to worry about how you are going to make your fixed income and nest egg last. If you are recently retired, you might also be experiencing these concerns as you examine your daily spending and address unforeseen costs.
In either case, you are not alone. Many Americans are experiencing anxiety about how to stretch their retirement finances to maintain their lifestyle, or, sadly, to even last at all. Fortunately, you have options! With some foresight, planning, and diligence, you can help supplement or bolster your income so that you can enjoy the retirement you deserved and worked so hard to achieve.
Budget, Budget, Budget
While some people are born budgeters who excel at balancing their checkbook from the moment they open their first bank account, many others are not – and that’s okay! However, no matter which type of person you are, budgeting during retirement is integral to making your resources last. Whether you have yet to draft a retirement budget or you still do not feel secure with your existing one, now is the time to take full stock of your daily expenditures. Compare these with your existing income and resources and think of ways to cut down on the former. In addition to basics like switching to generic food and medications, consider actions like calling your phone or cable provider for money-saving bundles, and never forget to ask for senior discounts!
Find Public Benefits
There are countless trusted organizations out there in every state providing assistance to seniors. Do not feel guilty for using these resources; they exist for a reason. With a shrinking Social Security trust, an unpredictable economy, longer lifespans, and a constantly-increasing cost of living, anybody could find themselves in a position where they could use a hand. Here is a state-by-state guide for finding resources in your area.
Explore a Reverse Mortgage
Reverse Mortgages are legitimate, government-recognized loans for homeowners 62 and older. Many people confuse Reverse Mortgages with second mortgages, however, they are quite different in terms of risk. Reverse Mortgages provide a stable additional source of income that uses the existing equity you have built in your home. A second mortgage, however, is an additional loan that could cause you to owe more on your house than it is worth. Reverse Mortgages typically allow you to choose how you wish to receive your funds, such as a lump sum, a line of credit, or a monthly payment. Monthly payments are a great choice for new or experienced budgeters as they are easily managed and worked into your existing plan.
Would you like to learn more about how a Reverse Mortgage can offer financial stability in retirement? 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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