Step Outside the Box of Traditional Planning
Contribute to a 401k, invest in property and avoid taking on unnecessary debt. These are the most common pieces of advice when talking about preparing for retirement.
What if there are more creative approaches to funding this season of life? These surprising tips can help adults of all ages prepare to supplement their traditional retirement savings.
Drastically downsizing, although unconventional, is a smart way to prepare for comfortable living later in life. Selling a primary place of residence or letting go of an expensive lease helps reduce overall expenses.
After that, the options for small living are endless. Single retirees could find a roommate with similar goals, move into a tiny home or purchase an RV. A more modest lifestyle can free up extra cash for other more pressing expenses or allow for more travel and fun during these golden years.
Don’t Retire (Completely)
Retiring from a 9-to-5 doesn’t have to mean giving up work forever. In fact, while receiving disbursements from a 401(k), seniors may find they feel more freedom to seek out work that speaks to their passions while supplementing their savings.
What’s the one job you’d do if money weren’t an issue? There’s no better time than the present to think about making a little extra money and filling the years after retiring. A job as a flight attendant, baker, freelance writer or handyman is a great way to turn a hobby into a source of income. Before retirement approaches, it’s smart to invest in the training or education needed to make a dream job a reality.
How could a home remodel set working adults up for an easier retirement? Home investments made while cash flow isn’t a concern can pay off in the future. Certain investments like new siding, a new roof and adding an additional bedroom increase home value, which could turn a profit down the road.
Even those who don’t plan to sell their primary place of residence in the future could benefit from a well-maintained home. A spare bedroom could become an Airbnb rental, which could bring in $75, $100 or even $250 a night depending on the location.
Living in an area with a high cost of living can quickly deplete retirement savings. Individuals with a flexible lifestyle can plan ahead for an affordable retirement by finding a new place to call home base.
For example, life abroad in Portugal is said to cost under $1,300 a month. In Penang, which is located in Malaysia, a comfortable apartment costs less than $800, and medical and grocery expenses are surprisingly affordable, too.
Thinking outside the box can open up new possibilities for the future. Whether comfort or excitement is the priority, it’s possible to create the retirement you desire with enough creative planning.
~ Here’s to Your Financial Health!