Reaching retirement is the ultimate goal for millions of people throughout the country. However, once you leave your everyday job and enter retirement, there is a very real concern with most Americans about how to best maximize their income during this time.
Here are several strategies you may want to consider in order to maximize your income during retirement.
Continue Working
Yes, working kind of goes against everything reitrement stands for. However, many Americans enjoy the benefits that continued work provides. Going from a 40 hour work week to zero hours can come as a shock to many. This can be especially difficult if you’ve enjoyed the work you do and the people you’re interacting with. Keep in mind that many companies offer retirees the opportunity to work part time and even consult on the side.
Other enjoyable pastimes may include becoming a ride share driver. This can be a nice way to get out of the house and earn some extra money. You may also want to look into working at a local community center or teach classes. There are all kinds of ways you can earn money in retirement while still enjoying a full life. Studies have shown that these types of activities can also keep your mind active and help you stay in better physical health as well.
Push Back Social Security Benefits
You can start cashing in those Social Security benefits at the age of 62. However, with quality healthcare and a healthy lifestyle many people are living two, three, or even four decades longer. That means your Social Security benefits are more likely to run out.
Consider pushing back your Social Security benefits until you decide to 100% retire. If you can push this back five or even 10 years, you'll have more money on the back end, which offers more income for a time when you can enjoy retirement it to it’s fullest.
Adjust Your Investments
As you enter retirement you need to adjust your investment risks. This is where many people run into problems. If you keep a large amount of your retirement funds in stocks and higher risk investments, you may find yourself suddenly on the losing end of hundreds of thousands of dollars. At a young age you have more time to make up for this loss, but when you're retired (or near retired) you don't have that kind of option.
Instead, as you approach retirement you may want to consider moving your investments over to safer options. Whether this means CDs, IRAs, or even mutual funds, talk to a financial planner on where to best move your money.
Put a Retirement Tax on Yourself
What would happen if the government were to suddenly increase your taxes by 3%... 5%... even 10%... What would you do? You would pay it because, unfortunately, you wouldn’t have any choice.
Consider placing this type of additional retirement tax on yourself if possible. Talk to your financial advisor and develop a strategy that would allow you to save just a little more each month. These little savings can add up big time! Consider the type of retirement you would like to have and then plan ahead as much as possible. Save now and enjoy later.
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