Most people are living longer and naturally, will find it difficult to estimate how long their retirement will last. As a result, the odds are you will find yourself living in retirement for many more years that you may have expected. It is for this reason that it is crucial for you to ensure you have more than enough protected income to cover your expenses and live comfortably.
Regardless of whether you will be likely to retire entirely, or perhaps in stages, you now can take advantage of an increase in the number and types of opportunities available when it comes to your retirement finances.
Folks will have more than one source of income for their retirement. Some sources of revenue will be secure, meaning money that is regular and guaranteed for life, while other income sources are considered flexible. Flexible income is not guaranteed to last your entire retirement and is often an amount that fluctuates.
Have you wondered how you will pay for expenses when you retire? When you reach age 62, one way to do so is to apply for a reverse mortgage. It is a home mortgage unlike the traditional type you may know. A reverse mortgage allows you to borrow money and pay none of it back for several years. In fact, as long as you manage the responsibilities of home ownership and do not give up your residence, the loan period is indefinite. One of the best things about how a reverse mortgage functions is you can request funds in a variety of ways, including line of credit, lump sum and monthly payment. The monthly option can almost function as a replacement for part of your lost working income for as long as there is cash available for you to borrow.
In short, a reverse mortgage is a borrowing arrangement that is guaranteed by the capital in your home. This means the part of your home’s value that is debt-free or already paid off. A reverse mortgage enables homeowners to receive money while not having to sell their house.
A reverse mortgage specialist will be able to tell you the options available to you based on your unique situation. It may be a lump sum, a line of credit, or a monthly amount paid to you. Involved in any reverse mortgage application
is the need for a home appraisal. This will provide an official, current worth for your home. What your home’s value is listed as is important so make sure to look into ways to easily improve your home’s value.
An income annuity is another earnings possibility that delivers consistent, secure cash installments for as long as you are living, or, should you prefer, for an established time frame. The guaranteed revenue from an income annuity may help you to take care of your essential, day-to-day living costs. Income annuities come with many benefits that may satisfy your retirement income requirements.
Segregated fund policies present a lengthier investment option that will provide you with freedom in how you manage your retirement revenue. Additionally, segregated funds offer death benefits and maturity assurances. A further added advantage includes the potential to sidestep any estate or probate expenses so your possessions will go directly to your beneficiaries.
A lot of us experience a financial blow to our bank accounts
at some point in our adult lives. When this occurs, most immediately believe saving for their retirement must be the first thing to go. As we age, we are even more likely to encounter expenses that will put a strain on our finances.
The need to navigate through your financial situation is often challenging. Planning for your retirement and following that plan is probably one of the most important steps you can take to secure your future. Make sure you speak to a financial planner and learn all that you can about the myriad of economic possibilities out there. Do not forget! You have more options than you think when it comes to your retirement finances.
5 thoughts on “You Have Options When It Comes To Your Retirement Finances”
These are all really good points. It’s really important to keep these things in mind when you are coming up on your retirement years. Considering the costs beforehand and planning ahead will certainly make the process much easier when the time comes. Nicely said! Thanks for sharing your tips!
I use the fixed dollar withdrawal amount and will lower my withdrawal amount when I pick up Social Security. Retirement is fairly cheap so long as you don’t go hog wild with your money, I still am able to spend 2 months in Florida in the winter. You can easily find part time work, maybe 1 to 2 days a week vs full time work.