Are you getting ready to retire? Are you fully prepared to venture into the independence of retirement living? If your nest egg has suddenly disappeared or you have already placed a dent in your savings account, now is the time for a plan B. It’s never too late to start saving and setting aside money and assets to help you live comfortable after your last day of work. Here are just a few simple tips on revamping your retirement plan.
Living with a Disability
If you’ve recently been diagnosed with an illness, it can really put a damper on your future retirement plans. If you’ve been unable to work or are currently living off of disability—there is likely little to no money to set aside for future retirement. It can be challenging to revamp your retirement plan when most of your income likely goes to medical expenses. The main goal is to find things to do that won’t affect your health, but allow you to make some extra money in the meantime. Here are things you can do if you live with a disability and still want to set money aside, such as:
- *House or pet sitting.
- *Creating a blog or website for monetary purposes.
- *Completing menial tasks online such as surveys or writing reviews that pay.
- *Baking or cooking for family and friends.
- *Selling items around the house or crafts that you create.
- *Mystery shopping for money.
Small jobs that pay well can be helpful for building your retirement nest egg. Just bear in mind what your limitations are, and what services you’ll be able to offer. Another way to save on out of pocket medical expenses is to reach out to community organizations. If you need to purchase home care supplies or personal care items related to your disability, ask your local area on aging about donated or discounted items available to those with limited income. Durable medical equipment and assistive devices such as mobility scooters, hospital beds, and walkers may be available for free or no cost to you. This will give you more money in your pocket to set aside for future living expenses.
Tap Into Mortgage Equity
If you’ve made some poor financial mistakes in the past 10 years, including dipping into your retirement fund, it can be hard to make up for it. One way to get a hold of some cash quickly is to tap into the equity in your home, if you own it. This includes:
- *Access the equity in your home through a sale at or above market value.
- *Refinance your home to cash out the equity.
- *Obtain a reverse mortgage and get cash for equity, but lose ownership of the home.
The main goal is to eliminate a large house payment and gain access to your investment. Keep in mind that although a reverse mortgage gives you fast access to cash, you lose the rights to ever will the home to someone else, resell it or move out of it before you die.
Cashing Out Your Assets
Another way to save some money for retirement is to cash out any assets that you might have. Some examples include:
- *Vintage cars, boats or RVs
- *Campers in good condition
- *Scrap metal
- *Antiques or collectibles
- *Jewelry and guns
- *Stocks, bonds, certificates of deposit
The best thing you can do once you cash something in that has value is to invest it or put it in an IRA. Any type of account that builds interest over time, and has minimal stipulations for future withdraws.
If you’ve found yourself with a small amount set aside for retirement, there is no better time than now to start investing those funds. A financial advisor will be able to help you organize a specific amount to deduct from your income now to invest in your future. Some examples include:
- *A retirement income fund—a type of mutual fund that deposits money into stocks and bonds as well as other designated investments.
- *Immediate annuities.
- *Dividend income fund.
- *Closed-end fund that produces income over time.
- *Stocks and bonds.
- *Investing in rental properties.
It’s understandable that if you’ve previously faced a financial setback, that you may not feel like you have a lot of options. It’s important to take what you have and a percentage of your current income to create a solid investment in your future.
Now is the time to take charge of your retirement. Utilizing several methods to gain control of your financial future is the best way to breathe a sigh of relief that you’ll be able to have a comfortable retirement.
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