As a worker, retirement savings is framed as a matter of building enough money over a long stretch of time.
As a retiree, your focus is no longer on saving money.
Spending money and staying on budget are the primary concerns.
More Americans, in fact, are worried about running out of money during their retirement life, according to a survey by the Transamerica Center for Retirement Studies and Aegon Center for Longevity and Retirement.
Financial experts are now consulting with clients on how to execute withdrawal strategies that adapt to the changing economic landscape.
If you’re concerned about effectively spending down the money you have during retirement, there’s good news. You can enjoy the retirement scenario you’ve always envisioned for yourself by preserving your nest egg for the long haul without compromising.
Dynamic financial decision-making
Generally, the way people spend their retirement money year over year is not identical.
Spending trends toward the higher end during the earlier years of retirement as individuals begin to work on their bucket lists.
During the middle, spending dials down before it picks up again in the latter stages of retirement life.
Instead of following this up-and-down formula, you can make dynamic budget decisions based on the size of your portfolio and current market conditions.
This approach can be combined with a minimum distribution plan to take full advantage of the current market to make good on your retirement goals.
Social Security pension that pays more
Claiming your Social Security benefits is a consequential decision.
Various factors, such as marital status and age differences between loved ones, can hinder your ability to make a strategic decision for when to begin receiving these benefits.
Delaying Social Security is an impactful way to boost income, but the timing must be correct. When you chart your financial plan, be sure to take any risks of running out of money seriously and plan around it.
You can use various open-source calculators to see how long Social Security can be put off. Each year you do, you can increase the monthly amount you receive once you start receiving checks.
Home equity conversion mortgage
If you’re over the age of 62 and live in the property as your primary residence, you can consider this type of mortgage.
By doing so, you can eliminate monthly mortgage payments and build out your retirement funding at the same time.
Retirees can still exercise their option to sell the home or pass remaining equity on to heirs.
To learn more about how to secure additional financial flexibility and provide extra security for your retirement planning, contact us today to learn more about this opportunity.
*[AL1] (1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full repayment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.
[AL1]What does the * refer to?