Retiring doesn’t necessarily mean you’re totally going to depend on your pension check. Although you’re past the prime of life, it does not mean that it’s too late to start investing as well. Let’s face it, daily expenses won’t stop coming upon retirement, it maybe reduced in some ways, but sometimes it can also be increased due to frequent travels and relaxations and to even personal things acquired for the satisfaction of the word “retirement”. Of course none of these things is bad at all; it’s been what you’ve been dedicatedly working for all your life, to reap of the fruits of retirement.
However, it can also be the time for investing. With some simple financial planning on how to earn extra retirement income, a retiree can invest for the future, for them or for their children. How to earn extra retirement income will need some steps to follow, starting with setting of goals. Setting goals is all about evaluating spending and income, and deciding on what you’ll need to do to boost your income to meet the goals. Do away with tapping you 401 (k) plan and other tax-deductible retirement accounts, and consider starting your own small business or getting a part-time job to meet the expenses, it might be fun.
How to earn extra retirement income is also about throttling back on risk. Even though you might be enticed to invest heavily in high-risk stocks, resist. Put a fraction of your pooled money in such stocks no more than ten percent to twenty percent, depending on your taste for risk. Put a bigger percentage of your selection in tax-exempt bonds and other lower-risk stocks. A number of consultants recommend to keep at least forty per cent in bonds or bond funds after retirement, which is also one way of how to earn extra retirement income.
Think about selling your home and moving to a retirement community, profits from the home sale can be invested to help fund for your retirement, or consider a reverse mortgage if you decide to keep your house. Look around for reverse mortgage.
Take benefit from investing brochures, stock analyses, personal-finance magazines, and other resources that can be availed of online and at the local library. A lot of libraries carry Morningstar assessments for mutual funds. A website that offers free tips on protecting oneself from scams is the American Association of Retired persons (AARP), and some senior centers from time to time host free-low cost investment seminars.
Another good initiative is to start estate planning and deciding on how to distribute your assets after death. A lot of experts say that to maintain a current lifestyle in retirement, seventy percent of your pre-retirement income is needed.