7 Brilliant Retirement Ideas for Baby Boomers
In today’s economy, you can’t take any chances with your retirement. Read on for 7 retirement ideas baby boomers can use to protect and grow retirement income.
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As a baby boomer getting closer to retirement, do you approach it with excitement or with apprehension? Do you feel you’re financially ready?
Whatever retirement ideas you’ve already put into place, there’s always room to consider a few more.
Are you looking for retirement ideas that will protect or grow your income?
Here are seven ways you can approach retirement and lessen any apprehension about your finances.
1. Hire a financial advisor.
Laurie Blackburn, first vice president of Investments at the Speck – Caudron Investment Group of Wells Fargo Advisors says if you are in your 60s and don’t have a financial advisor, it’s time you get one.
“You need to get illustrations run to see what your retirement income looks like,” says Blackburn. “You need to start planning for how you will take it and how your asset allocations will work.”
Whether you’ve been contributing to a 401(k), have a Roth IRA, or just plain don’t have a savings plan in place, a financial advisor can steer you in the right direction.
For example, a financial advisor would recommend that boomers max out their contributions to all tax-deferred retirement accounts, and then take advantage of Roth accounts.
Doing so gives retirees more flexibility and enables them to have adequate life insurance to protect their families in case there’s a medical emergency.
So if you’re not sure about where your money stands or how to make the most of what you have, then getting a financial advisor may well be one of the most practical retirement ideas.
2. Get a job.
Most pre-retirees plan to do some sort of work during retirement. They say that continuing to work will keep them stimulated and feeling worthwhile.
The good news is, if you choose to work after retirement, this doesn’t mean you’ll be stuck in the same line of work you’ve called your job. Particularly if you didn’t enjoy it.
Retirement is a great time to launch a new career; especially a career where you work for yourself.
Now more than ever, retirees are stepping up to the entrepreneurial plate and starting brand new. Internet businesses and jobs are on the rise and since they can be done remotely, they are a legitimate opportunity for retirees to make some extra income.
Another of the better retirement ideas is to buy a franchise. It’s not nearly as risky as starting your own business because it already has a proven template.
And retirees who previously worked as executives have that particular brand of corporate know-how to become successful franchisees. Extra revenue generated by a franchise can be stashed away into savings.
3. Hit the books.
If you’re looking to go in a completely new direction, then consider heading (back) to school.
Colleges and universities in the U.S. are designing programs geared just for boomers who want to learn something new. And many of these programs are non-credit.
Community colleges are also appealing to boomers by offering classes to those over 50 who want to update their job skills so they can prepare for a new career. So retirement from your old job might well mean an opportunity for new work.
4. Stagger your spending plan.
If you’ve ever seen a retirement spending calculator or graph, there’s usually an upward spending curve from one’s 60s through their 90s, and that’s not reality. No one spends like that.
To protect your retirement income, plan your spending based on how healthy and active you plan to be during retirement.
For example, you’re likely to be more active in your mid-60s than in your early 80s and so should anticipate spending more during that time.
And keep in mind that healthcare is always going to be the unknown wildcard. It can be tempting to think that if you don’t already have a chronic care situation, then you never will.
Be sure to allocate what you feel will be the appropriate amount.
5. Find a tiny home community.
Now that the kids moved out, does your house feel a little too large? Have you considered how much you’re spending on utilities and maintenance for this space that now sits half empty?
By moving into a tiny home that ranges between 100 to 400 square feet, retirees have a chance to scale way down, save money on expenses and find a new community of like-minded folks.
If you can handle the smaller space, going with a tiny home is one of the smartest retirement ideas. The homes are inexpensive to build, easy to maintain, and some of them are even mobile so it’s a great way to save money on travel during retirement.
The tiny house movement is catching on with many retirees. According to AARP, roughly two out of every five tiny house owners are over the age of 50.
Just imagine having less stuff, paying under $20 in utilities, and deep cleaning the whole house in under an hour.
6. Retire abroad.
If your visions of retirement include a balmy and palm-treed paradise, you may end up in the financial hole. At least if you’re planning on one of these warm locales in the U.S.
But you could do it far cheaper if you moved out of the country after retirement. Places like Mexico or Costa Rica require much less money for housing and offer favorable exchange rates.
Research the communities you’re interested in though. Be sure you know that they’re safe. And you’ll want to visit in the summer and winter months so you know how the seasons differ.
Retiring abroad is a huge decision, but it could also make a huge difference in how much money you save.
7. Be a volunteer.
How does volunteering relate to protecting and growing your retirement income?
Well, it’s in an indirect way.
Volunteer organizations love boomers because they have more education than previous retirees and bring a skill set that charities see as valuable. Such recognition of your value can have benefits down the road.
After all, it never hurts to have a large social circle for networking. You never know whether your skills will be needed elsewhere.
Retirement is supposed to be an enjoyable and rewarding time of your life so take it in stride.
As you can see, there are plenty of great retirement ideas that will promote and safeguard your income during this important chapter of your life.
If you have any retirement ideas you’d like to share, we’d love to hear about them.