In this time and age, financial security for the senior citizens is far from guaranteed. However, following a good plan based on professional advice can improve the chances for an easy ride into the sunset.
To be completely honest, nobody is ever ready for retirement. After decades of hard work and money saving, it’s not easy to draw the line and start a new chapter. One of the most significant reasons why people continue working deep into their sensitive years is the need to secure a steady inflow of money to pay for the rising medical bills and living expenses.
Of course, that wouldn’t be necessary had they taken care of their financial future while they were younger. Here are a few tested money management practices that could have a positive impact on long-term financial health of the upcoming retirees:
Clear the mortgages
Taking mortgage-backed loans is a risky practice at any point, but it becomes especially troubling as you near the end of your career. If possible, it would be wise to enter the retirement completely free of debt and in full ownership of the home you live in. This brings basic security that you will always have a roof over your head even if your income is greatly reduced. Getting to the stage where you have no threat of a mortgage hanging over you might take some financial sacrifice over the years, but it is well worth it.
Invest smartly and safely
Too many people are gambling on the stock market, trying to beat the odds and make a large profit. That’s fantastic when it comes through, but the consequences of failure can be dramatic and long-lasting. It makes more sense to put your money into a less uncertain venture that can promise solid returns if everything goes right and won’t destroy you if it stumbkes. A few innovative investment plans are available that let you do just that, eliminating the risks inherent in the traditional stock trading.
Buy assets that don’t lose value
Fancy sports cars and jewelry are great for fleshing your wealth, and totally terrible as investments. These luxury items depreciate significantly the moment you take them out of the store and you can never recoup full value if you decide to sell them later. Instead of status symbols and eye-catching finery, you’d be better advised to look for less glamorous purchases that might actually bring you additional cash in 5 years, like buying a parcel of land in an area scheduled for development, for example.
Secure an ongoing source of revenues
Money earning doesn’t have to stop when you quit your office routine –especially if you already possess some skills and assets. From occasional consulting engagements to renting out unused properties, there are dozens of ways to collect revenues without having to be on a demanding schedule. Some people might actually enjoy staying professionally active in a limited-time capacity, while the additional money will certainly be very useful even if you are already well-covered.