Retirement is quite an exciting proposition. You will finally have the time you’ve always wanted to live each day how you please without the constraints of a work schedule. Whether you wish to travel, pick up an old hobby, volunteer, spend more time with family, or just simply relax, you will now have the freedom to do so. However, this excitement is often accompanied by worry. Will you have enough money to last you the rest of your life? Will your fixed income get in the way of your retirement dreams? What if you have an unexpected medical expense?
The best way to answer these questions and address your fears is by effectively planning for retirement. However, with so many financial options and moving parts, retirement planning can leave people feeling overwhelmed. Whether you are nearing retirement age or are recently retired and facing new financial concerns, you can rest assured that there are plenty of options for you. This guide will provide some ideas on how to make the most out of your retirement so you can live life to the fullest.
Keep Savings in Mind
Prior to retirement, it is critical to prioritize saving money. According to the Department of Labor, “you will need 70 to 90 percent of your preretirement income to maintain your standard of living when you stop working.” While taking money out of your paycheck and putting it into your savings account is what comes to mind for many, there are many ways to save proactively by putting your money to work instead of in a savings account.
- Contributing to your employer’s retirement savings plan (e.g., a 401(k))
- Make strategic, diverse, and low-risk investments with the help of an advisor
- Put money into a traditional or Roth Individual Retirement Account (IRA)
If you are already retired, you can still take measures to stretch your savings further. For example, you can seek out financial assistance for seniors; there are many more available resources than you might think. Here is a list of public benefits by state and here are 50 resources that provide assistance to seniors.
Consider a Reverse Mortgage
A Reverse Mortgage allows homeowners to access some of the equity they have built in their home. They are great options for both those nearing retirement age and current retirees. This is because they are available to homeowners 62 and older. They convert existing equity into cash to be used however you see fit, whether it’s for home improvements, healthcare costs, investments, and whatever else.
Find a Government-Approved Reverse Mortgage Specialist
Reverse Mortgages have many benefits as well as measures in place to protect policyholders. If you enroll in a Reverse Mortgage, you will have an educational session with a government-approved specialist, maintain ownership of your home, and never owe more than your home is worth. Some options, such as Home Equity Conversion Mortgages (HECMs) are insured by the U.S. Federal Government. While Reverse Mortgages are legitimate, government-recognized loans, criminals have been known to use them as a cover for scams (just as with social security, health insurance, etc.). For this reason, it is important to find a trained and licensed Reverse Mortgage Specialist.
Learn About the Benefits of a Reverse Mortgage For Your Retirement
If you are unsure of how to successfully plan for your retirement or are retired and wish to increase your financial flexibility, a Reverse Mortgage may be the perfect solution. To learn more about how such a program could work for you, contact Retirement Home Equity Advisors today. We are a team of licensed specialists located in Gilbert, Arizona 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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