Retirees Are Learning to be Rich
The typical picture of retirement is sailing off in the sunset to enjoy life and, for many, that’s all they ever hoped for. But more and more, many retirees aren’t settling for that “hands off” approach to their golden years, especially when it comes to their finances. While many take action almost as a hobby because they saved enough money to take care of their needs, others are doing it out of necessity. They want more money to enjoy life and they’re making up for lost time. Many retirees are learning to be rich by following some basic strategies and using their earnings to live the retirement of their dreams. Does that sound interesting to you? It should be because some of the things they’re doing make a lot of sense for almost anyone we know who would like to improve their financial picture in retirement.
The most obvious way to improve your financial picture is to keep earning income. While many retirees are still active in the job market, my advice here would be to be a little more selective than you might have been in your youth when you were first seeking employment. Try to do something related to an interest that you have. I know two guys who work at a country club in Florida and they’re near their favorite sport every day. The hours go by quickly and their discounted rounds are a nice benefit. Retirees are learning to be rich by making a little extra income and then making that money work for them, but we’ll talk more about that later. There’s one other way to generate income that you might want to consider and that’s following the trail blazed by thousands of retirees already. Starting a business in today’s world is easier than ever and doesn’t require the investment that you might think. Truth be told, many retirees would continue to work at their business even if they didn’t make any money because it’s a lot of fun, a challenge that they enjoy and it’s more satisfying than anything they had done in their working years. Many have started a website related to an interest that they have and have not only learned a new skill but made a lot of new friends and have gained a reputation within their area of interest. Go do a search on the internet focused on a hobby that you have and see for yourself. You’ll find retirees by the dozens doing something that they love and making a little money on the side. Why couldn’t that be you? Maybe you’ll be one of those success stories everyone is talking about. The results speak for themselves.
Many retirees are learning to be rich by doing a few simple things that anyone can do.
Another way to improve your financial situation is to live on less than you need to and, although that sounds like it could be painful, it’s a lot easier than you think. If you don’t have an accurate retirement budget, you should. I cannot stress this enough and it will lead you automatically into the next phase of this process and that is to cut your costs in retirement. Retirees are trimming their household expenses more than they ever thought possible simply by examining every bill and seeing if they can get a better deal or if they need to pay it at all. You can live on less money than you’re paying out now and not have to eliminate anything that you’re doing. The wealthy do this all the time and so should the rest of us. And, if you’re smart, you won’t just “spend’ your savings. Retirees are learning to be rich by doing what I referenced earlier: investing wisely.
No one should outsource their investments completely. I am fully supportive of having a qualified financial advisor, but I am 100% against leaving everything up to them. Everyone needs to be informed and engaged in the decisions that are being made concerning their investments. I can just hear some readers say that they don’t know anything about finances and it’s not something they want to learn. I don’t know of anyone who isn’t capable of learning enough to at least ask questions! When you can at least hold a conversation with your advisor, it can improve your knowledge as well as theirs. They will know what you want out of your investments and you can tell them what you want out of the services they provide. If nothing else, ask your advisor three things. First, how are they getting paid? Find out if they or the company they work for is charging a fee for their advice. Most of the time the answer will be “yes” and you have a right to know how much that fee is. Most of the time it’s a percentage of your investments and typically that will range from one to two percent. The second question you need to ask is whether they will be making any fees from the investment tools they are offering and whether anyone else is making money from this type of investment. An annuity (which is an instrument designed to offer you a guaranteed income) will have costs associated with them and all you want to do is make sure you know who is profiting from your investment and how much they are getting. Ideally, you want an investment advisor who is a fiduciary, which means they will not make money from a service they offer you other than the fee schedule they provide. The third question to ask is how much risk is involved with the investment path you’ve chosen. While stocks offer the potential for great rewards, there is also greater risk that you may lose some or even all of your investment. Retirees are learning to be rich by increasing their knowledge of investments and some are even making it one of their hobbies. If you want to embark on a hobby that can provide an incredible challenge and opportunity, investing might be something you want to look into.
For many retirees, there is one other area to consider and that examining where and how you live. If you live in an expensive area with a high cost of living and real estate taxes or Homeowner’s Association (HOA) fees that are putting a damper on your lifestyle, think about leveraging the equity that you’ve built up in your home. This requires careful research, but many retirees “downsize” their residences and move to a less expensive area. They may come out way ahead in the process and use the money they save to do exactly what we mentioned above, which is to invest wisely. Moving to a smaller house when you have advanced in age can make a lot of sense and, if make your house “age proof” by building on one level with no steps and handicap accessible facilities, you’ve taken care of your future needs as well. You can find many areas that offer a lower cost of living, tax breaks for retirees and a simpler lifestyle. Retirees are learning to be rich just by taking these few simple steps and they’re taking their “windfall” and spending it on things they really enjoy or becoming investors who are determined to build their wealth. Everyone should take control of their finances especially when they’re retired. The decisions may be difficult to make but, once you develop a plan, you’ll be glad that you did. There’s no time to waste because everyone needs to Enjoy Retired Life!
Thanks for visiting. If you like what you see here, please tell your friends. If you haven’t done so already, be sure you take The Self Discovery Challenge for Retirement! It’s designed to help you make the most of this wonderful time of your life. You’re never too old to discover something new about yourself!
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