It’s no secret that successful planning is the key to enjoying a worry-free retirement. It’s also true that you never know what life’s going to throw at you.
Emergencies seem to happen when least expected and can often bring significant expenses. When you’re retired, the consequences can be devastating. Large, unexpected costs can deplete your savings and wreak havoc on your finances if you aren’t prepared.
For retirees, one of the most challenging questions is how to generate income. After you stop working, you’ll need to find a way to ensure your financial stability for the long term. Two predominant ways people use to have income in their post-work years is through either an IRA or Social Security benefits.
If you have a decent amount of savings in an IRA, you may decide to take distributions from that. Or you could file for Social Security benefits as soon as possible. Some retirees choose to use both sources, while others might have the ability to use one and save the other. But which scenario is best for you?
Retirement is a time for you to kick back and enjoy life. There are many things people consider doing in their post-work years. With newfound free time, it’s easy to start spending money on costly things you would never have considered before.
For many retirees, it’s difficult to balance the desire to enjoy their newfound freedom with the need to stay within budget. Most retirees live on a semi-fixed income, so large cash outlays can have a substantial impact on their finances. Before making a big purchase, consider how it may affect your ability to live comfortably in later years.
It’s difficult to plan for the end of your life. Most people like to think about retirement as a time of fun experiences, new adventures and more time for friends and family. No one wants to think, much less plan for, declining health, extended care and eventually passing away.
Despite being unpleasant, the end of life is a reality for all of us. And it comes with its own set of issues and challenges. Thinking through these problems ahead of time can make the end of your life as easy as possible for you and your loved ones.
If retirement is approaching quickly, you probably have a number of big decisions to make. One may be how to allocate your investments to minimize risk and take advantage of growth opportunities. Another could be determining how you will spend your time in retirement. And one big part of your planning most likely involves determining when and how to file for Social Security.
Technology is changing the world in ways that may have been unimaginable just decades ago. One of those changes is the way in which many people can now connect with others, even on the other side of the planet, to complete relatively complicated business transactions. This new form of connectivity has opened up a previously nonexistent stream of potential income sources for retirees.
One such stream is the opportunity to rent out property to strangers over the internet. Using sites such as Airbnb, VRBO, and others, you can now become a mini-landlord. You can rent out your lake house or beach condo when you’re not there. You can rent out your home while you’re on vacation. You can even rent out the unused bedroom in your house on an ongoing basis.