Boost Your Income In Retirement With These 6 Tips
Think you can’t boost your income in retirement? You may be surprised at the options available to you! This post will explore ways to increase your income so you can comfortably enjoy your retirement years. Whether you’re retired or about to retire, read on for tips on how to make the most of your retirement savings. So what are you waiting for? Start reading now and see how you can start boosting your income today!
1) Review your retirement accounts and make changes to optimize growth
If you’re like most people, you have a 401(k) or other retirement account that you contribute to during your working years. But once you retire, it’s important to take a close look at how your account is performing and make changes if necessary. After all, your retirement income depends on the success of your investment portfolio.
One way to optimize growth in your retirement account is to rebalance your portfolio on a regular basis. This means ensuring that your investment mix—the percentage of stocks, bonds, and cash in your account—is aligned with your risk tolerance and goals.
If you’re not sure how to rebalance your portfolio, talk to a financial advisor. They can help you make the right decisions for your unique situation.
2) Downsize your living situation for a lower cost of living
One way to increase your income in retirement is to downsize your living situation. If you own a home, consider selling it and moving into a smaller home or an apartment. This will free up extra cash that you can use to supplement your income. You may also be able to save money on things like groceries and utilities by downsizing your home.
Rent out a room in your home
If you have an extra room in your home, consider renting it out. This is a great way to bring in extra income without having to make any major changes to your lifestyle. You can rent out a room on a short-term basis, such as for travelers who are looking for a place to stay, or on a long-term basis.
3) Sell unused possessions for some extra cash
If you’re like most people, you’ve probably accumulated a lot of stuff over the years. And while it may hold sentimental value, it’s not doing anything to help your bank balance. So why not take a trip down memory lane and have a good old clear out? You could make some serious money by selling unwanted items on sites like eBay or Craigslist.
Not only will you declutter your home, but you’ll also have a little extra cash to play with. So it’s a win-win! Just be sure to take some good quality photos and write descriptive listings, so potential buyers know exactly what they’re getting. Trust us, it’ll be worth it in the end.
4) Invest in dividend-paying stocks and ETFs for regular income payments
Dividend-paying stocks can provide you with a regular income stream to help supplement your other retirement income sources. When considering dividend stocks, look for companies with a history of paying and increasing their dividends, as well as those that are financially healthy and have sustainable business models.
When it comes to generating retirement income, many people think of Social Security and pensions as the primary sources. However, there are other options that can provide you with regular payments to help cover your living expenses. One such option is investing in dividend-paying stocks.
Dividend stocks are shares of a company that pay out periodic cash dividends to shareholders. These dividends can provide you with a source of regular income that can help supplement your other retirement income sources.
For added peace of mind, consider investing in dividend ETFs, which offer diversified exposure to a basket of dividend-paying stocks. This can help mitigate the risk associated with investing in a single stock.
If you’re looking for an income-generating investment to add to your retirement portfolio, consider dividend stocks and dividend ETFs. Just be sure to do your research and only invest in companies that have a history of financial strength and stability.
5) Take on a part-time job to supplement your retirement income
Do you have a hobby or skill that you could turn into a part-time job? If so, this is a great way to bring in some extra income during retirement. You can work as little or as much as you want, and you’ll get to enjoy doing something you love while making some extra money. Whether you start your own business or find a part-time gig through a friend or family member, put your skills to work and start earning some extra cash.
If you’re not sure where to start, there are plenty of resources available to help you find the perfect part-time job. Check out websites like Indeed.com or LinkedIn.com, or ask your friends and family if they know of any openings. Once you find a few possibilities, reach out and see if you can get started.
6) Consider using a reverse mortgage to access home equity
If you’re retired and own your home, you may be able to use a reverse mortgage to access the equity in your home. A reverse mortgage is a loan that allows homeowners to borrow money against the value of their home. There are plenty of cons with taking out a reverse mortgage, but a pro is the loan does not have to be repaid until the borrower no longer lives in the home. This can be an attractive option for retirees who need extra income but don’t want to sell their home. If you’re considering a reverse mortgage, make sure you understand all the pros and cons before making a decision.
Reviewing your retirement accounts and making changes to optimize growth is a critical step in ensuring you have enough money saved up to live comfortably during your golden years. Downsizing your living situation and selling unused possessions are also great ways to supplement your income and make the most of your savings. If you’re looking for more ideas, investing in dividend-paying stocks can provide a regular stream of income payments, and taking on a part-time job can help stretch your retirement dollars even further. Finally, if you’re concerned about having enough money saved up, consider using a reverse mortgage to access home equity – this unique loan product can help seniors tap into their largest asset while still allowing them to retain ownership of their home. What steps are you going to take today to improve your financial security in retirement?
Take the Next Step
The first step is to schedule a complimentary consultation with one of our experienced CPA or CFP® professionals. We’ll review your current situation, answer any questions you have, and develop a personalized plan to help you achieve your financial goals. Contact us today to get started! Schedule free consultation
Matt Ward is a financial advisor and the president of New Century Investments, an independent investment advisory firm serving business owners, pre-retirees, and retirees in the Dallas-Fort Worth area and beyond. Matt is passionate about integrating investing, planning, and tax management into a holistic approach. Matt’s breadth of knowledge and experience in both taxes and investment management sets him apart, giving him the ability to design, advise on, and manage business strategies, tax efficiency, and retirement planning. He is known for his care and attention to detail and works hard to develop personal relationships with each of his clients so they can benefit from his customized service and guidance. He loves walking with his clients through their financial journey, supporting them and celebrating with them as they reach their goals.
Matt graduated from Texas Tech University with a bachelor’s degree and is a CERTIFIED FINANCIAL PLANNER ™ and Chartered Retirement Planning Counselor℠ professional. He’s currently working toward receiving his CPA certification so he can provide a higher level of service to his clients. When he’s not working, you can find Matt hiking, playing the guitar, and spending time with his family. To learn more about Matt, connect with him today.