Making the Most of Your Retirement

Many of us dream to have a carefree retirement full of luxury, relaxation and travel.  Yet life circumstances can leave us in a less than ideal state of preparedness. If you have just a few years before retirement or if you are decades away, there are a few things to do to make your retirement years a bit more golden.

Invest for income

You always want to grow your net worth as much as possible, but the key to a good retirement is being able to regularly pay yourself from your investments, to replace your current income. Build a well balanced portfolio of investments that things like rental income, stock dividends, annuity payments or an investment plan that has enough liquidity to pay the bills.

Never pay full price

They say that a penny saved is a penny earned. This old adage could be rethought. How much is your time worth? Any time that you pay more for goods or services, it could be thought of as you having to work longer to pay for those things. The time put into comparative shopping is time well spent. An average of an extra 10% savings on the things you buy could add up to hundreds of thousands or millions of dollars over the course of a lifetime. There is an old British saying, “Mind your pennies and the pounds will take care of themselves.”

Travel of the Beaten Path

When you are looking for grand adventures around the world in your retirement, go off the beaten tourist path.  Most people don’t realize that once you get yourself to many 3rd world countries, everything is much cheaper than you are probably used to seeing. Look for cheap flights on sites like Cheapo Air.

Get rid of the mortgage

You may hear some ridiculous philosophies, like a mortgage being “good debt,” because you are creating equity and you get a tax credit for mortgage interest. If at all possible, you should pay back your mortgage at an accelerated rate. If you can pay off your 30 year mortgage in 20 or your 15 year mortgage in 10, you will save many thousands of dollars in interest. This is money that can go straight into your retirement.  The average person pays ⅓ or more of their income on rent or a mortgage. Pay it off early and you can have ⅓ more income to live on.

Follow these tips and your golden years will have a bit more shine.

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