Win the lottery!
No seriously, concerns about being able to pay for retirement is one reason more and more people are working for as long as they can. Just talk to your family and friends and you will start to understand why everyone is concerned about retirement.
In the old days, you could rely on a pension plus your Social Security benefits. But those days are gone and the effects of the dot-com and housing crises are still being felt by millions of baby boomers.
This doesn’t mean that retirement is an elusive dream. Instead, it means that you will need to spend some time planning for a retirement without needing to worry about your finances. Well, get set as this article will give you some insight on what you need to do.
- Take Advantage of Tax-Free Savings Plans
These could include 401(k) plans through your employer or Health Saving Accounts. Both allow you to save without having to pay income taxes and as such they are a great way to get ready for retirement – even if you can only afford $100 per month.
Granted, many 401(k)s took a hit during the recession, but we are not in the midst of one of the longest periods of economic expansion in U.S. history. This means that most of us have found ways to make ends meet.
So, take advantage of these totally legal ways to shortcut the tax man – after all, you work hard for your money.
- Your Home is Your Castle
That’s right and for an increasing number of people over 62 it is also their most valuable asset for retirement planning. How does this work? The answer is simple – reverse mortgages.
These loans have been around for nearly 50 years and they are designed for seniors to tap into the equity they have built up in their homes while not needing to make any mortgage payments over the life of the loan.
Does this sound too good to be true? It is not. Most lenders provide reverse mortgages which are insured by the Federal Housing Administration and if you are interested in more information then check out this website at www.reverse.mortgage.
- Insurance – Especially Long-Term Care Insurance
While you will want to take out a life insurance policy in conjunction with your reverse mortgage, the real insurance you will need for retirement is long-term care insurance. As you know, it costs a lot of money to be sick in the U.S. and this insurance is designed to help cover the cost of long-term care.
Don’t retire without this coverage and nearly all seniors face a point where they will be hospitalized for long periods of time and that could mean hundreds of thousands in medical bills.
Ok, you’ve retired but maybe you need some extra income. Then why not become a freelancer? This is a great way to continue to earn based on the expertise that you have built up over a lifetime of work.
The beauty of being a freelancer is that you don’t need to work full time. Instead, you work when you want to, thus giving you the freedom to enjoy other pursuits.
- Learn to Let Go
Besides the cost of healthcare, another reason why seniors are concerned about retirement is that many have failed to cut back on their monthly expenses. Let’s face it, you’ve probably got enough sweaters, shoes, and other do-dads. As such, you should consider ways to cut back on your monthly expenses.
Learning to let go will help you come to grips with your financial situation without stressing about how to make ends meet. An added advantage is that you will develop more discipline when it comes to your expenses and this will help you to make sure you have some extra money to enjoy a treat every now and then.
- Leave the Country
Let’s face it living in the west can be expensive. Not to mention the winters are quite a drag. So, why not move to a low-cost country in the tropics. If you do, you will literally be living in paradise and your money will be able to stretch a lot further!