If you’re heading into retirement, the last thing you want to worry about is how you’ll continue to make money.
You can maintain smart spending in retirement and maximize your finances safely and successfully with the proper planning and strategies.
Retirement Annuities
An annuity is an insurance product that provides the buyer with a guaranteed income for life. When purchasing a retirement annuity, you can do so as an immediate or deferred option.
Strategic Withdrawal
Strategic withdrawal includes a method for withdrawing your money and using it as cash flow in addition to allowing what you still have in savings to continue to work for you.
Using a Bond Ladder
Bond laddering is when you purchase a variety of bonds that all have differing mature dates. When a bond matures, it pays out an interest rate, typically twice a year. When you use a bond ladder, the maturity dates are staggered, leading to a steady stream of income.
Pension Plans
Pension plans are employee benefit plans that provide retirement income upon ending your career until the day you die. Typically, companies build pension plans by investing large sums of money into the stock market and bonds to ensure enough money to pay employees’ pensions once they retire.
Reverse Mortgages
A reverse mortgage allows you to take the equity in your home and turn it into cash. For older adults who own a large portion of their home, a reverse mortgage can be used as a source of retirement income without risking the roof over your head.
Social Security Benefits
Every paycheck you receive has a small amount taken out that goes into Social Security for most individuals. You also earn credits for the number of years you pay into Social Security.
Government Resources and Public Assistances
Income programs like the Supplemental Security Income (SSI) and Senior Community Service Employment (SCSE) programs can provide another income stream for individuals in retirement. There are also numerous tax assistance programs as well as resources for federal workers and retired military.