May

Three Ways to Increase Your Retirement Income

Financial health is always a concern. Given the current economic climate, retirement is not as stable as many people had hoped, and more and more people approaching retirement age are becoming concerned with their retirement income. Though stocks and investments have recently done poorly for many, those not wishing to be left with a minimum wage spending income may be considering using some of their savings in the slurry of Wall Street opportunities now available. Stocks are at low not seen in years, which gives those who can afford it a great chance to pick up some solid companies dirt cheap.

1. Reduce investment fees

Investment fees and associated charges devour profits. How can you possibly make more income in retirement if you withdraw it from investment? I’ll tell you why—because investments are not bankable income. These days Wall Street is taking a lot of heat. President Obama recently stated “Wall Street, I think, is hoping for an easy out on this thing, and there is no easy out.” Individual stock pickers historically have about a 30% chance of beating market returns, and many people will wind up paying 2% or more due to investment fees – commissions, management rates, and other costs really eat up any profits or income. Consider no-load mutual funds or similar low or no-cost investments rather than funds or stocks with management fees and percentages. Sometimes the investment just isn’t worth the return!

2. Delay Your Social Security

Social security income can be delayed beyond the age of 65, and there are some juicy benefits. Arranging for this delay increases your Social Security income by a percentage each year (based on the date you were born). Therefore, even a small delay in the time your start drawing on your social security can turn out to be huge increase when you draw on the assets later on.

3. Downsize Your Home

Homes that are extremely large and expensive merit increased taxes as well as absurd operating costs. Those at or near retirement age probably don’t need as much house; kids have moved out and there are likely to be fewer people living in your home, so consider reducing your house! One sure way to increase your available finances and retirement income is to downsize your house and take back those thousands that accumulate in mortgage, landscaping, utilities, and other living expenses. You could sell your current home and reinvest in a house that costs half as much as your mansion – using your equity to increase your available spending money and dramatically reducing expenses at the same time!

Wall Street investments and retirement don’t always mix. They always say not to invest more than you can afford to lose, which suggests investing is a young person’s game. Be sure that in your retirement years, a period which should be marked by tranquility and achievement, you don’t have to worry about your finances!