Retirement is supposed to be a time of rest, relaxation, and security. However, many retirees are finding their lives thrown into chaos as a result of financial stress – resulting in anything but happy golden years. Believe it or not, you can avoid financial stress by managing your wealth and cash flow and being smart with your choices. Here are five ways to gain back control in your retirement years.
Smart Lending Options
If your retirement years are not playing out how you would have hoped due to financial stresses, then you may like to look at a seniors’ equity release home loan. Instead of maxing out your credit card, selling possessions, and getting loans from friends, families, and banks, you can get one or many advance payments from the value of your home. An equity release loan enables you to remain the legal owner of your property, but you can release part of its value. You can also buy back the share you sold at any time. It’s an excellent way in which to free up cash while not being tied down with debt.
It’s never too early to think about your retirement. Even as you enter the workforce for the first time, you can start thinking about joining superannuation schemes such as 401(k) and starting a nest egg to provide a level of comfort as you age. In many programs, your employer also matches your contribution to your retirement fund, helping to prepare you further for your retirement years ahead.
The average property price in the United States today is now $279,500 – nearly tripling in value from a mere 50 years ago. Such amounts could work in your favor. If you still live in the same home you raised your family, then you may find it’s no longer fit for purpose. If it’s only you and your significant other, do you need four bedrooms and a big backyard? Potentially not. You may find that a way in which to help your financial situation in your golden years is to downsize and put more money in your bank account.
People tend to retire when they hit their early to mid-60s, but just because it’s the social norm, doesn’t mean you have to follow suit. If you love your job, it’s not detrimental to your health, and you would prefer to earn extra money while you can, then there’s no reason why you need to retire when the state determines you have reached an appropriate age. If you want to take control of your life and maintain your independence for as long as possible, there’s no reason why you can’t keep your career. You may even be able to alter your hours for a better work-life balance.
When you are ready to retire in terms of age, it does not mean you are ready to retire in terms of financial stability. If the income you lose when you retire is problematic for you, a reverse mortgage can fix the problem. Unlike a regular mortgage, which has to be paid back in ongoing instalments, a reverse mortgage provides ongoing monetary payments to you. To qualify for a loan from a reverse mortgage lender you must be at least 62 years of age and use the home in question as your primary residence. You must also agree to retain home ownership for as long as the loan is in place. If you ever leave the home, the total balance owed will be due. If you cannot pay it or choose not to, the lender will authorise the sale of the property and keep money earned up to the amount owed.
As soon as you enter the workforce, you should always be putting your mind toward the time you will no longer be in it. Consider investment. Talk to an experienced investment broker and find out what they recommend for long-term investments that tick away in the background. Consider buying a range of shares and let them build up over time. You can then be making passive income on the side, helping to make your retirement years more comfortable.
Retirement can sneak up on you sooner than you expect, and the terrifying prospect is not getting older, but not being financially secure when you do. Begin thinking about retirement today by considering any of these five options.