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Retirement is supposed to be the Golden Age, a time when an older man or woman can sit back and relax, enjoying another quarter of a lifetime with minimal stress involved. It is a time to have fun, a time to reflect. Then again, it's hard to relax when the economy is in such shambles, isn't it? What can retirees do to protect themselves from financial hardship and make sure their Golden Years are literally golden? (As opposed to 'Sterling Silver' years.) Here are five suggestions that may help.
1. Diversify Your Financial Investments
Your investments in the retirement years are going to have to serve your needs for quite a while, so don't risk every thing you have on just one or two things. Instead, try diversifying your investment portfolio and go for numerous asset classes. Think about stocks, bonds, real estate investment trusts, commodities, hedge funds and other new directions. This diversity will help to protect against inflation.
2. Talk to a Professional Financial Planner
Sometimes people lose a lot of money because, frankly, we don't always know what we're doing. This is very unfortunate if you are at the retirement age. Rather than be frightened off by the ever-changing market, you can jump ahead of the market by hiring a reputable investment or financial advisor who specializes in financial retirement planning. If you're trying to save cash, try to look for a fee-only advisor who won't suck extra money from you because of commissions.
3. Put Away the Credit Cards
Put away the credit cards once and for all. We're not saying you should rip them up entirely, but they will fare better in a glove compartment or in a box somewhere in your closet. Young people can afford to make big mistakes with credit cards and get thousands of dollars into debt. You don't want that problem, certainly not in your blissful retirement age. Live off cash and checking accounts only, and make sure credit cards are emergency-only resources.
4. Resell Your House for More Modest Accommodations
If you own your home, just think of how financially secure you could be if you sell a moderately expensive house and move into a moderately affordable one. You can even make up to $250,000 without owing any capital gains. (Married individuals can make up to $500,000.) If the land value or cost of living is too expensive, consider relocating to a cheaper state.
5. Wait for Social Security and Keep Working
Social Security benefits are available at age 62 but if you wait until you are 66-70 then you get more money per month. Furthermore, if you keep working not only can you postpone SS but you can also do wonders for your health, keeping active and keeping sociable. Furthermore, your company may actually want you to stay on and may go to great lengths to keep your experience and maturity on their 'side.'
Start planning for tomorrow's retirement today!