Life hacks are shortcuts, tricks, and skills that help solve particular problems in a clever way. These 5 retirement hacks are meant for both future and current retirees to make retirement less expensive and interesting.
- Use an Online Financial Advisor
You should consider smart ways of managing your money. An online financial advisor can help you get acquainted with tools and resources that can make managing retirement savings simpler. There are several apps that can help you get a clearer view of your investments, savings, and budget.
- Get Low-Cost ETF’s for Your ABC’s
The best way to make more money in your stock investments is by saving money. Mutual funds with letters A, B, or C towards the end usually involve a sales charge. This means that you are paying more for the mutual fund in administration costs than are coming out of your potential returns. These funds may also carry higher annual expenses.
Ditch the ABC’s for widely traded Exchange Traded Funds (ETF’s) which not only cost less, but can also be traded throughout the end as opposed to at the end. Your online financial advisor will have you know that trade commission can cost 50% less at the same brokerage rates.
- Cover Healthcare Costs with Roth
You don’t get Medicare before you are 65. This means the biggest challenge is for you to find a way to pay those increasing health bills. Roth IRA savings can help retirees use tax-free withdrawals to bridge the price gap. This way you reduce tax concerns on your other income sources, such as Social Security.
- Downsize Your Debt
Debt is a real and present problem for most Americans that begins at early adulthood and stretches all the way to middle age and beyond. Your days of struggle can become more significant when you are retired and out of an income stream. This makes it important that you consider a debt repayment plan before you enter retirement.
Your target should be to pay off all your debts, including student loans, car loans, mortgage, credit cards and other debt before you retire. This way, all you need to be concerned about in your later years is to cover regular household and utility bills. This will also leave you with more money to spend on family, travel, and anything extra you may want to purchase. Plus, by taking care of your debt right now, you get to save on the interest payments.
- Invest in Real Estate
Real estate is a huge booming market and one of the best ways for people to make enough money to retire comfortably. The best part about investing in real estate is that you get to keep ahead of inflation and always have something that can be sold or rented during an emergency.
Real estate investments, when done correctly can help you start making money right away. That income will continue for the rest of your life. You can always start small with one unit even if you cannot afford the entire apartment complex.