Though it is an unfortunate fact to know, but based on a recent study the average retirement savings of all American families is $95,776. Mind you, that is just an average and there are still a handful of good investors and savers who can pull up that digit. Aside from that, it is also important to consider the median savings balance among Americans and that is $5,000.
Seeing that value, whether you are entering your golden years with a huge or limited amount of savings, it is best for you to know the some ways to earn. So without further ado, here are the things you can do to earn in retirement:
Social Security Retirement Age
Most employees retire at the age of 66 to 68; with that, they are eligible for getting a full benefit amount based on your earnings during your working years. However, when you choose to retire at the age of 70, you will get a significant increase of up to 8%.
For instance, employee A chooses to retire at the age of 66 while employee B waited a few years and retired at the age of 70, both employees are eligible for full retirement benefits. Employee A is eligible to get $1,500 per month while employee B will obtain $1,980 monthly payment. The main reason behind is that employee B decided holding off his retirement for a few years.
Manage Your Stocks Wisely
Some financial advisors recommend the retirees away from stocks typically due to the risks involved in stocks. This doesn’t mean you should completely liquidate all your stocks. It is advisable to keep high performing investments and this will give extra dividend over time.
Bonds are safer alternatives to stocks with a lower return rate. This allows you to save up precious time checking out the stock market but gives regular interest rates that can help with your financial needs as an alternative source of additional income.
Municipal bonds are issued by your home cities or states you’re in and the best thing about this is that the federal taxes will not affect the interest rates earned from municipal bonds. Other retirees filled their portfolio with all sorts of bonds and this can probably sustain a portion of what you need during your retirement plan.
Start A Small Business
After retirement, other retirees choose to work part-time to have some extra money. However, if you don’t like what you’re doing, it is not worth spending your extra time doing that extra work. What you can do is create your own business.
Just a tip for starting your own business, if you have a hobby you enjoyed doing, make it your business. You will be able to earn extra money while doing the things you like. This will also give you a way to engage in your community and efficiently spend your newfound time. If your retirement benefits can’t deal with your start-up costs, you can always get a small business loan to help you with an extra capital for your venture.
Most of the time retirees are living in a smaller place than an average American because they don’t usually use the extra rooms in their house and decide moving in a smaller place. On the other hand, retirees can utilize these unused rooms by finding tenants. This is best if you’re place is near a city or you’re near a college institution.
You can look for students who are searching for a place to stay or employees working in the city that can’t afford mortgage yet. This will provide extra income during your retirement time and you can make the most out of your property.
Retirement is a fun thing and it’s nicer to have an extra source of income during your spare time. You just need to have the right investments without sacrificing too much when dealing with your money management during retirement.
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