Social security may be able to take care of a few of your bills in your retirement years but a lot of people now realize that it is neither realistic nor smart to rely on collecting a social security check. Luckily there are a number of ways to ensure you will have an income stream even after you quit your regular nine to five.
Individual Retirement Account or IRA
Funding an IRA, whether it is of the traditional variety or a Roth IRA is an important part of saving for retirement. Both types are associated advantages and disadvantages so there is no one size fits all solution. It is always best to do a bit of research on which is the better option for you before you make your choice.
Take Up a Part-Time Job
Who says you have to totally give up on working just because you have reached retirement age? There are lots of jobs you can get and some people like to know that they have some responsibilities and something to do with their day. The main advantage is you’ll have some money coming in but you can also use your part time job to stay active and stay social.
Tap into Home Equity
If you own your home and you realize that you don’t have enough money to fund your retirement you can either look into the possibility of getting a reverse mortgage, or consider selling your home to buy something smaller and more manageable. You can use the difference to add to your retirement fund and still not have to worry about renting or maintaining a house that is too big for your needs.
Start Drawing Down on Investments
When you retire it is time to cash in on your investments. If you were diligent about investing during your working years you may have money in the stock market, in bonds and other instruments. There is no need to liquidate all of your investments and your financial advisor may be able to help you to come up with a phased plan for selling your investments that will be most profitable.
Rent from Real Estate
If you have investment properties you can use your time to manage them and live off the rental income. Real estate proves to be a solid investment over time, especially if you have a longer-term strategy.
Retirement should be relaxing and enjoyable but it is just not possible to evoke these feelings if you are constantly worried about money. Take some time to plan ahead for your retirement years to ensure you can enjoy peace of mind later on.