Sunday, March 11, 2018

Nest Egg: How to Finance Your Golden Years with a Golden Goose

It’s never too soon to plan for retirement. In fact, the more time you spend getting ready for that stage of life, the better prepared you will be. Here are several ways to finance your senior years to ensure a comfortable quality of life.

Job Pension

If you work for a company that offers a pension plan, especially one that matches employee contributions, with each paycheck from which funds are deducted for this purpose you are building a financial future for the golden year. 

Pensions come in many types, sizes, and designs. If your company offers an optional plan that you have not yet enrolled in, you should schedule some time with the Benefits Administrator to discuss your pension options. 

If you are able to withdraw funds at various times, try to avoid doing so, as this will reduce your pension savings, leaving you with smaller monthly payments during retirement.

Financial Investments

Stock and bond investments, along with other types, can be established as conservative or aggressive portfolios. The sooner you open an investment account, the quicker it will begin to gain value and compound earnings. 

Gold and silver are also collected to earn profit over time, as are the current digital currencies like bitcoin, among others. Some people collect things that they expect to increase in value over many years, such as sports cards, valuable coins, and limited editions of collector items like dolls, antiques, etc. 

As some items increase in value over time, they can be sold to generate income for the senior years.

Social Security

When planning to retire, contact the Social Security Administration for information about your full retirement age, which can vary among different groups of people. Although you can retire at any age, for example at age 62, your full retirement age may actually be 66. 

You should also find out how many years of your employment have had Social Security deductions. You can also talk to a social security lawyer for additional help and tips. If you work in an industry that features a pension contribution plan, you might not have Social Security funds withheld. 

If you have changed jobs, your Social Security status may likewise have changed. Contact the SSA for details.

Home Equity

Paying off a primary residence or building significant equity over time can be a valuable asset in retirement. 

Not only will you be free of a monthly mortgage payment if you pay off the home, but you also may be able to use the accumulated home equity of the property as a source of borrowed funds, if needed.

Everyone needs a secure source of income when retirement rolls around. Start feathering your golden goose nest with assets like these.

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