How To Have An Affordable Retirement

As you prepare for retirement, you may face financial roadblocks that may prevent you from affording your current lifestyle, especially if you will be living on a limited or reduced income. However, don’t fret, it is still possible to prepare for a retirement that you can afford.

• Plan a Retirement Budget
  • One of the biggest things you can do is to learn to manage your expenses and plan a retirement budget. Building a retirement budget can help you assess what financial goals you want to reach in order to live the retirement lifestyle that you want, especially if you stick with it.
• Plan for long-term care and medical expenses.
  • As part of your retirement budget, you should also be able to assess how much money you want to save for your medical expenses, medical emergencies, as well as being prepared for possible long-term care, if that need ever occurs. It would also help if you save for the cost of out-of-pocket medical expenses, such as some medicine, glasses, hearing aids, or other expenses not covered by your insurance or Medicare benefits. Creating that cushion for your medical expenses can help you make sure that you continue to stay within budget during your retirement.
• Take care of yourself.
  • Along with be conscious of saving money for your medical expenses, it is important to take care of yourself prior to retirement. Eating healthy, exercise and regular check-ups can be vital for keeping you healthy and protect your physical well-being. If you take care of yourself now, you may be able to save money later down the line with your medical expenses.
• Consider working part-time.
  • A growing trend amongst boomers and retirees, is that some are opting to work part-time, whether it is it continue to socialize or to help add extra income to their nest egg. While this might not be for everyone, a part-time job or consultation job can provide flexibility and income that you may need during your retirement.
• Avoid using credit cards as much as possible.
  • Credit cards can often carry high interest rates that can eat into your expenses. It may be a good to reduce your credit card usage, but keep one or two for emergencies or for car rentals.
• Use a reverse mortgage as a financial planning tool
  • Reverse mortgages were originally created to help senior homeowners who were cash poor but house rich to turn a portion of their equity into cash. Without having to worry about making monthly payments to the lender, borrowers are able to use the money they receive to match their needs. A reverse mortgage can also be a wonderful financial planning tool and provide the additional padding they may need in their savings account.

Interested in learning more about Reverse Mortgages? Contact a Senior Advisor today at 1-888-808-8486!

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