One of the most important things to do in making sure your retirement is on the right path is establish a realistic budget, an income plan, and an investing growth strategy. Here are some of the things to consider:
Do you have a home, and are you considering remaining there and “Aging in Place”? Have you considered a reverse home mortgage for your home to generate income? If you’re 62 or older you may want to consider a reverse mortgage. It allows you to convert part of the equity in your home into cash without having to sell your home. A reverse mortgage can be complicated and might not be right for you, because it uses up the equity in your home, which means fewer assets for both you and your heirs. If you do decide to look for one, review the different types of reverse mortgages, and shop comparisons before you decide on a particular company.
Do you plan on selling your home, and have you received a market evaluation, researched housing costs of moving to another state, and the lifestyle of a retirement community? A market value appraisal can be obtained from local real estate brokers, and mortgage finance companies.
Are you willing to relocate in order to save money? The following states have no state income tax: Wyoming, Washington, Texas, South Dakota, Nevada, Florida, and Alaska. Puerto Rico (officially the Commonwealth of Puerto Rico) is a Caribbean Island and unincorporated territory of the United States with no federal or state tax, if your income is earned as a resident of Puerto Rico.
At what age will you start to collect Social Security? You can start receiving your Social Security retirement benefits as early as age 62, but the benefit amount will be much lower than your full retirement benefit amount, at age 70. There is no additional benefit increase after you reach age 70.
What are the benefits of opening a 529 educational gift account for your grandchildren? Some of the advantages of a 529 account (specific to state) for your grandchildren’s education, are that they have tax-free growth potential, that allows for qualified withdrawals for higher education expenses and the unused funds are also transferable to a relative of the beneficiary, all tax-free.
Have you considered working with a financial advisor that could possibly improve the return of your “nest egg’ with more money to spend in retirement? Some financial advisors specialize in retirement planning, and have a unique strategy, for you to match with your personal goals, by investing in stocks with both and dividends, ETF funds, and bonds.
Financial advisors are legally prohibited from promising returns, and this is in no way intended to be a personal recommendation. Your investment decisions are the responsibility of you the reader, and we hope we have given you some food for thought.