Retirement Survival: 3 Ways To Financially Survive Retirement

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retirement survival

Reached Retirement|Now Survive It

Your Financial Survival

Once you reach retirement it’s all about financial survival.  Since you do not have a regular pay check anymore you are completely dependent upon your retirement investments.   You need to stretch your investment money by finding financial work-arounds.

Stop thinking you have control over the markets. You cannot stop the stock and bond markets from fluctuating and changing your investment values.  You need to approach your financial situation from a different direction.

Your Financial Work-Arounds

#1 – Find Income Producing Investments

Annuities will provide you a guaranteed life time stream of income.   You cannot outlive your retirement income.   Many retirees use their annuity income to help supplement their retirement income.

Different Strokes For Different Folks

There are several different types of annuities available, each one offers different risks and guarantees.

  • Deferred

You received the stream of income at a later date of your choosing.

  • Immediate

You receive the income payments immediately after opening the account.

  • Single Premium

You make only one premium payment.

  • Multiple Premium

You make a series of payments over a period of time.

  • Fixed

You earn a fixed interest, regardless of market performance.

  • Variable

Your money is tied to the market because it is invested in stocks, bonds, money market or mutual funds.   Your earnings will fluctuate depending upon the performance of the underlying investment.

  • Indexed

Your interest rate is based on an outside index, for example, the S&P500.

#2 – Work It|Skip The Baggage

The key to surviving retirement is preparation
photo by presentermedia.com

You may have to skip full retirement for partial retirement.   The current value of your retirement investments may not be enough to support your retirement lifestyle.  Your situation is not uncommon; many retirees are finding part-time work to help supplement their retirement incomes.

If you do have to get a part-time retirement job, make it one without baggage,  follow your passions.   Get a part-time job doing something you love.

#3 – How Low Can You Go

When your retirement income drops due to a market crash, you quickly learn to change the way you look at money; market dips reduce your supply of it.

You will have to lower your retirement budget; learn to live on less.

Threatening yourself might work.  If you cannot manage your spending it’s back to work for you.

  • Stop Impulsive Spending

Coffee on the go is a big impulsive money waster.

Dinner out because you gave up cooking.

Buying clothes, shoes and purses because it’s what you’ve always done.

  • Stop Wasting Money

Bottled water…some would argue that it’s just a gimmick.

Fees and interest on credit card balances is such a waste of good money.

Popcorn, soda and chocolate malt balls increases the cost of a night out at the movies.  Movie treats are a waste of money and terrible for your figure too.

  • Change Desires

Downsize your home and cars.

Downsize your vacation plans.

Move.  There may be cheaper locations across the country with a lower cost of living.

Your Retirement Years

Your retirement years will be different from your working years.

When your retirement income drops due to circumstances beyond your control you need to kick into high gear.  You need to determine how you will survive financially.   You cannot rely on the markets to give you any guarantees; rely upon yourself.

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