(NAPSI)—Most people have a vision of their golden years that
includes a comfortable retirement in which they can spend their time doing
the things they enjoy. That dream doesn’t require a substantial amount
of wealth, but it is a lot more attainable if you have some financial
stability.
Unfortunately, just 17 percent of older Americans are “financially
healthy” and four in five low- and moderate-income Americans over the
age of 50 are struggling with at least some aspect of their financial lives,
according to a 2019 study funded by AARP Foundation.
Here are five tips for increasing financial stability during your
retirement years:
1. Stay out of debt. Debt can
be destabilizing because it robs seniors of some of their free cash flow and
reduces the amount of money they can spend each month. Credit card spending
is especially dangerous for retirees, so consider a pay-as-you-go habit for
new purchases.
2. Be a smart investor. Whether
you have a small retirement savings or a large investment portfolio, a
diversified low-cost investment strategy can deliver additional income for
spending and help you stay ahead of inflation. Choose a mix of stocks, bonds
and cash that helps you sleep soundly at night, according to The Vanguard
Group.
3. Consider downsizing. Many
retirees are hesitant to move out of the home where they raised their
children, which is understandable for both emotional and practical reasons.
But it might improve your financial stability to sell your current home and
buy a less expensive one for retirement, pocketing the difference and
investing it wisely.
4. Delay Social Security. For
retirees who have not yet signed up to collect their Social Security
benefits, it may be advisable to delay that start date as long as possible.
This may sound counterintuitive if you are searching for financial stability,
but research has found that most seniors will benefit from the higher payouts
they will receive by deferring to age 70, if possible.
5. Increase cash flow. One way
to raise the amount of cash available for funding your retirement is to work
part-time, an option that is more available to seniors than ever before.
Another possibility is to unlock cash tied up in assets that you might not
even realize can be sold. For example, a life insurance policy is considered
your personal property and—as such—you have the right to sell
that policy anytime you like. When a consumer sells a policy in a “life
settlement” transaction, the policy owner gets a cash payment and the
purchaser of the policy assumes all future premium payments, then receives
the death benefit when the original policyholder passes away. Candidates for
life settlements are typically aged 70 years or older, with a life insurance
policy that has a death benefit of at least $100,000.
A comfortable retirement is possible without an enormous nest egg, but it
is very difficult without at least some degree of financial stability. By
staying out of debt, practicing smart personal finance and maximizing cash
flow, the vision you had of your golden years could be within reach.
To learn more about how to generate cash from a life settlement, visit www.LISA.org or call the LISA office at (202)
580-6188.
“By staying out of debt,
practicing smart personal finance and maximizing cash flow, such as by
selling your life insurance policy through a “life settlement,”
your golden years could be more comfortable. http://bit.ly/2WAiRE3
On the Net:North American Precis Syndicate, Inc.(NAPSI)