11 Best Retirement Strategies You can apply
Retirement is changing — people are living longer, jobs with pensions are increasingly rare and retirees are relying on their 401k savings more than ever.
Some old retirement strategies don’t work as well as they used to and some are just plain wrong.
Here are 11 best retirement strategies that you can apply:
- Money is important.
- You shouldn’t depend solely on Social Security to fund your retirement because while it will provide the basics food, housing and health care for most, it won’t be sufficient to support the opportunities that life after work affords us.
- Retirement isn’t about how much money we have in the bank; but, about how much richness and optimism we have in life.
- Enjoy life after work because if you do it right it will be the best years of the rest of your lives.
- Every retirement is different, each with its own financial plan and unique needs, but many of today’s retirement goals include achieving asset protection, growth opportunities, and a reliable income source.
Best Retirement Strategy # 6: Pension
One key to escaping workdom is a rare, golden asset: a pension.
The best way to hedge against the fear of outliving your savings is through some form of guaranteed income.
Pensions and other fixed income — Social Security, bonds, annuities — create security, but they also open up options. Recipients can become more aggressive with their investments, waiting out any downturns and putting more money into high-growth stocks.
Best Retirement Strategy #7: Social Security
Most boomers are banking on Social Security, but not all of them.
If you take it at 62, your monthly Social Security check would be $2,060. By waiting until you are 70, it would grow to $3,643.
Many experts think that’s wise, especially if you are in good health and stand to live into your 80s and beyond.
Every year a person puts off collecting her Social Security benefits, her monthly check could increase by up to 8 percent, which is an equity-like return.
Best Retirement Strategy #8: What is your number
People have no idea what the right number is and the fact is, there is no right number. It depends on whether you have a mortgage and how much you need each month.
There are loads of ways to draw down your portfolio, including with annuities, bond laddering and simply selling off financial assets piecemeal.
Best Retirement Strategy # 9 : Review your expenses
Making money in retirement is hard, you either must save up enough money to produce a passive income, or you have to work for an employer or your own business. One of the most overlook ways to reduce how much money you need to retire is self-sufficiency.
Every expense that you can eliminate or reduce before retirement represents money that you do not have to earn or produce. Investing in self-sufficiency often has a much better return on investment than what is commercially available.
If your current home is your forever home, consider having an energy audit done. Many times, a small investment in making your home energy efficient can sizable dividends over time. Consider going solar, a modest investment in installing renewable energy could save you one hundred to two hundred dollars a month. Saving 200 dollars a month may not seem like a lot until you consider that represents 60K that you no longer must save for retirement.
Best Retirement Strategy #10:Purchase an Annuity
Annuities often get a bad rap in the financial media, there are often misunderstood, and often oversold by some advisors. Making matters worse, there are at least 4 different types of annuities, each with their own benefits and drawbacks.
Additionally, each company offering annuities has its own way of doing things and terminology that they use. Navigating the annuity landscape can be tricking at best. However, the annuity may be the overlooked tool you have been searching for.
Annuities typical all have one thing in common, they guarantee lifetime income that you cannot outlive. Several annuities guarantee that you can withdraw, 5%, 6%, or even more of the beginning account balance for life. The ability to withdraw 5% or 6% instead of 4% or less under traditional planning models, is like having 25% to 30% more money saved for retirement.
There are some downsides to annuities of course, and you will need to do your homework and speak with several advisors. However, when you are trying to make every dollar count anything that allows the Potential for 25% more income is worth considering.
Best Retirement Strategy #11: It is possible
It is possible to retire with less than what the experts suggest. However, to do so, you need to be mindful of each dollar you will spend and look for ways to reduce significant expenses like taxes and health insurance.
Building some sources of even modest income post retirement will reduce how much money you will need to save.
Ultimately, retiring while maintaining a decent standard of income may require some out of the box thinking and revisiting some less popular tools to maximize your income.
Best Retirement Strategies/Retirement Planning in Tampa Florida
In an ever-changing financial climate, it can be difficult to confidently create a financial strategy, let alone have the time to manage one that can grow with you over the years. It can be much easier to achieve your goals with an up-to-date and flexible strategy in place.
Mintco Financial is an independent financial services firm dedicated to assisting clients with their greatest financial concerns.
We offer comprehensive investment management and financial strategies coupled with unbiased advice and recommendations.
Our utmost goal is to provide customized strategies that can grow with clients throughout the many milestones of life.
We take pride in helping young professionals, growing families and retirees pursue their financial dreams.
Contact us at 813-964-7100
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