4 Tips to Make Your Money Last During Retirement
I’m sure all of us want to ensure our money lasts long during our retirement years. However, there’s a good chance you are concerned about outliving your money – and that’s normal. It’s essential to develop a strategy that will help you meet your specific financial needs for the rest of your life. Below are four tips that could help you with your retirement planning.
Tip # 1: Don’t Stop Working During Retirement
The ultimate way to make your money last longer is to get a part-time job you would enjoy. Going back to long working hours doesn’t seem appealing to most retirees, but even a part-time gig will help you stretch your savings a lot further. You will have some money coming in, and you won’t have to fully rely on your pension or 401k.
Tip # 2: Generate More Revenue Through Investments
You need to keep building more wealth, and your money needs to earn money during your retirement. You worked hard for your money, so make your money works hard for you by investing— and when you do, keep it simple.
Compared to leaving your retirement savings in your bank account, investing your portfolio in stocks and bonds can yield ongoing revenue for you, so you don’t have to spend your original capital. Use traditional exchange-traded funds to keep costs and taxes low, and diversify to keep your risks low.
Tip # 3: Invest in a Self-Funded Pension
A self-funded pension plan can relieve stress by providing a guaranteed lifetime income. The amount you contribute now can fund a payout guaranteed to continue for as long as you live. These programs are fabulous for self-employed people with no employees because of the tax-deferred growth, unlimited contribution limits, and flexibility in annual contribution amounts.
Tip # 4: Exercise and Eat Well
When you stay healthy and active, studies show you’re far more likely to avoid expensive medical problems, not to mention long-term care costs. A fit old age not only saves money – it’s more fun, too!
If you want to get the most out of your money, you need to know precisely how much is coming in and where and when it’s going out. Good financial planning can enable you to avoid money worries, so you can focus on enjoying the long, comfortable retirement you always wanted. If we can assist in your planning efforts, please let us know.