Most of us do not pay much attention to our retirement life when we are stuck with a 9 to 5 job. But the uncertainty and the absence of a paycheck revolving around the retirement age should be adequately planned and executed during the working phase.
The situation has worsened due to the ensuing financial meltdown and market crashes which wiped away millions of dollars of wealth. The dream of various individuals to fully live up their non-working years has not materialized. Therefore it is essential to think outside the traditional 401(k) and IRA paradigm and make simple and basic changes in your lifestyle to reap the benefits of a solid income during your retirement phase.
Save the Right Way
Individuals often have this habit of extracting sums from their retirement-saving account to meet living expenses and other personal needs. It should be noted that your savings should exclusively belong to your retirement age and exhausting retirement funds immaturely is not advisable.
Real-Estate is an Investment Heaven
One cannot enjoy a reliable source of income through cutting down expenses and properly saving. Rather you need to focus on smart ways of investing, and real estate is a brilliant solution. Investing in real estate requires a deeper understanding of the real estate market and the overall economic conditions.
Moreover you should incorporate and accept the additional responsibilities of becoming a landlord and the pertinent maintenance costs. You should keep an open eye on declining prices, and analyze whether the prices will go down further after investing. Surveying better rent prospects is also advisable. You should not limit your investment in your hometown; rather look for bargain deals across the nation.
Invest in Funds
Most individuals invest due to the “herding” phenomenon or simply speculation. But with retirement income in perspective, you should invest as an “owner”. By investing as an owner, you are focusing on long-terms results, and not just quick and short-term needs. Acquiring the professional help of financial planners is also advisable.
Mutual funds are the craze these days, and they are proven to be a reliable source of income due to their diversification attribute. Reiterate the type of companies included in the fund. Try to manage a decent proportion of “Value” stocks and “Growth” shares. Value shares are deemed to provide you with dividends, while growth stocks ensure future capital gains.
Debt: No Way
Whether it is mortgage payments or interest payments on credit cards, debt is not recommended for generating income in retirement age. Find innovative ways of reducing debt, such as prepayments on mortgage or restricting your shopping spree on credit cards.
Find Reliable Sources of Online Income
Google has shaped and revolutionized our lives. A combination of blogging and Ad-sense can provide you with a hefty monthly paycheck. Sharing your individualistic ideas online can be fun as well as a reliable source of income.
It does not matter which mode of income you choose, the essential point is to initiate these processes while you are still busy in a 9 to 5 job, so that you can generate income in your retirement age.
About the Author :
Allan has been writing on retirmenent and smsf. He loves blogging and sharing his opinions online.
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