Showing posts with label retirement income. Show all posts
Showing posts with label retirement income. Show all posts

Monday, July 3, 2023

Owning Real Estate in your Retirement Years

As you approach retirement, many financial decisions must be considered to ensure your financial security during your golden years. One of the most critical decisions you will make is about where you will live and how much you will spend on housing costs. 

Here are some reasons why owning real estate can be a smart financial decision in retirement.

Inflation Hedge

Firstly, owning real estate can be an excellent hedge against inflation. Over the long term, real estate tends to appreciate in value at a rate that is equal to or greater than the rate of inflation

Consequently, as long as you own a property, you are essentially protected against inflation, and you can benefit financially from the property's appreciation over time.

Cash Flow

Secondly, owning real estate can provide cash flow. If you own a property, you can rent it out to generate a stream of rental income that can potentially cover your housing expenses during your retirement years. 

If you own the property outright, the rental income can be pure profit. If you have a mortgage on the property, the rental income can help cover the mortgage payments, and once the mortgage is paid off, the rental income can provide a steady stream of cash flow that can help supplement your retirement income.

Tax Benefits

Thirdly, owning real estate can provide tax benefits. One of the most significant benefits of owning real estate is the ability to deduct mortgage interest payments and property taxes on your tax return. 

These deductions can significantly reduce your taxable income and can help you save thousands of dollars in taxes each year.


Fourthly, owning real estate can provide stability. When you own a property, you have control over your housing situation and don't have to worry about landlords raising rent or deciding to sell the property. 

Owning a property can provide peace of mind, stability, and control over your living situation.


Finally, owning real estate can provide a legacy for your heirs. When you own a property, it can be a valuable asset that you can pass down to your heirs. 

Over time, the property can appreciate in value, and your heirs can benefit financially from the property's appreciation if they decide to sell it or rent it out.

In conclusion, owning real estate can be a smart financial decision in retirement. It can provide a hedge against inflation, generate cash flow, provide tax benefits, provide stability, and create a legacy for your heirs. 

However, owning real estate has risks, so it's important to carefully consider your options and work with a financial advisor to ensure you make the best financial decisions for your financial security and retirement.

Monday, December 9, 2019

4 Ways to Supplement Your Retirement Income

Even if you had a great job for decades, retiring could put a strain on your finances. That is why many older adults are constantly in search of new ways that they can make a little extra money on the side. 

Here are four ways you can find some extra cash to help out with your retirement income.

Rent Your Spare Rooms

One of the most popular ways to get a passive income is to rent out a spare room in your home. That option could be especially beneficial if you have a separate living area such as a garage or basement that has its own entrance. 

Before you get a tenant, you must make sure that you have the proper insurance policy. Some traditional home insurance policies won’t cover any expenses associated with having tenants.

Become an Online Tutor

There is a huge demand for experienced tutors, and those individuals can make quite a bit of money. As an added bonus, online tutors can set their own schedule, and that could be very appealing if you are in your retirement years. 

To get started as a tutor, you will most likely want to contact an established tutoring company that can connect you to students and take care of the payments.

Be a Delivery Driver

Rideshare services have exploded in popularity in recent years, and many of those companies have recently established delivery branches. Instead of driving people all over town, you can simply drop off packages and groceries. 

In order to be a delivery driver, you must have a reliable vehicle, auto insurance, and a valid license. Some delivery and rideshare companies take a look at your driving record as well, and you must try to avoid tickets and accidents at all costs.

Sell Off Unused Possessions

Selling off a few of the items around your home is another great way to supplement your income in the coming years. Some of the best items to sell include jewelry, electronics, old coins, and antiques. 

If you have an unused vehicle on your property, then you should consider selling that as well. Getting money for your junk car is relatively easy, and many companies will pick up the car and pay cash on the spot.

In addition to these few tips, you also need to take a close look at your budget to see if any downsizing can be done. Your monthly bills are quickly going to add up when you are on a fixed income, and you might be able to save thousands a year by downsizing your home or cutting out a few unnecessary expenses.

Sunday, July 7, 2019

4 Easy Ways to Make Extra Income after Retirement

Most people look forward to their retirement. It is their time to relax, travel some, and start enjoying life. Unfortunately, many retirees find that the dream they had to enjoy their retirement is not within their reach due to a lack of finances. 

Luckily, it is not that difficult to fatten your wallet without taking on a full time job. Here are some easy ways for retirees to make an extra income.

House Sitting

This is one of my favorite ways to make some cash. While traveling, many people do not like to leave their home empty. They would be very happy to pay you to stay at their house while away. 

Home owners like having seniors who have reached retirement age watch their house because older people are usually more responsible than their younger counterparts. It’s very easy to find work doing house sitting by searching online for house sitting jobs. You will find many websites offering such a service.

Pet Sitting

This is very similar to the house sitting jobs mentioned above. People don’t like to leave their pets locked up in a cage while traveling away from home. 

They would rather find someone who will take good care of their pet. This arrangement allows their pet the freedom to run and play while staying with you at your house.

Sell Stuff for Quick Cash

If you are just looking for fast money to finance some travel or give yourself a little treat, then there is no easier way than to sell something that you don’t use anymore. This is especially true for retirees. You spent your entire life accumulating belongings that you probably haven’t used in years. Take some of the items and sell them online. 

You can sell smaller items on Ebay or Amazon. Also, there are companies that will give you money for junk cars if you happen to have an old one in your garage that you don’t want anymore. You get to clear up space, and you make cash at the same time. Nice deal!

Find Part Time Work Online

Since you’re retired now, you probably don’t want to work a full-time job anymore. Have you thought about working part-time? There are many jobs available where you perform work online. The best part about these jobs is that many are very flexible with your work schedule. If you search for online jobs, then you will find many that suit your skills.

In conclusion, retirement should be the time to do the things that you always wanted, but you’ve never had the time to do them before because you were too busy working. With some creative brainstorming, you’ll discover some easy ways to finance your new lifestyle and start enjoying life for real.

Sunday, August 5, 2018

Build Retirement Income with Condo Investing

As people near or reach retirement, many consider how to cut expenses while maintaining their current quality of life. Some get pensions, though most rely on Social Security and retirement investments to fuel their life after the paychecks stop. One of the first considerations is housing, and condo living is quite a popular draw for people over 50. 

It's less expensive, more compact, and has fewer yard work and maintenance requirements. Instead of just saving money, consider the fact that it makes financial sense to invest in condos, as well.

Choosing one or more condos as investment properties as you near retirement age might seem like too much risk to take on at that time of life. Yes, careful research is needed to maximize your returns, but condo investing is also less risky than other types of real estate opportunities for various reasons. 

If you need to get a home loan to purchase a new condo, make sure you understand the financial impact before you proceed.

The Benefits of Investing in Condos

Condos usually cost less than single-family homes in the same area, which allows people over 50 to risk less of their nest egg. Buying a condo in an existing community gives you detailed information about its track record for resale prices, property value overall, and tenant payments. 

Unlike separate homes, all the maintenance is taken care of by the property owner or management company. From a financial standpoint, condos in popular areas sell quickly and with possibly less marketing than a single home. 

The community often sells itself due to the shared amenities available. Holding them as rental properties gives you an ongoing, nearly passive income that can last throughout retirement.

Questions to Ask Before You Choose a Condo for Investing

Is this the right location to invest in? Location remains one of the most important factors when buying real estate either to flip or rent out. Look for community growth, employment opportunities nearby, quality of the schools, and other benefits that will make people move into the area. 

Also, check out the condominium complex itself to make sure residents and renters are satisfied with living there.

Should I invest in existing or pre-construction communities? If you purchase an existing condo property, you know exactly what you are getting, how much rent is currently paid, and the expectations of future raises. 

The track record of a particular property and, if occupied, the tenants, can help you make the decision more easily. On the other hand, it makes financial sense to invest in condos before they are built as this lets you get in on a potentially lucrative deal that can only grow over time. However, more risk is involved, and you will have to wait until construction is complete to begin making returns.

Do I want to flip condos or become a landlord? These two methods of investing in condos as you near or reach retirement age both come with pros and cons. Buying to resell requires organizing some repairs or renovations and then marketing the property to a new buyer. 

Buying to rent the condos out will bring ongoing income, but potential headaches you may not want to have during your senior years. In the end, the decision is up to you and your financial situation.

Tuesday, December 15, 2015

The Easiest Way of Generating Retirement Income as a Woman

According to research, most women save less amounts of money before they retire compared to men. The reasons behind this include earning less than men, taking time off to rear children as well as spending more time with their elderly loved ones. To add to that, some women don’t consider saving for their retirement until later in life, but, unfortunately, they wait till it’s too late.

There are various ways through which women can reverse this scenario and create enough income for their post-retirement lives. On top of pooling talents, resources and ideas with your fellow women, you can consider the following effective ways:

1. Reorganize your budget

Once you put the idea of saving in your mind, ponder reworking your budget especially your spending. You need to do away with non-essential spending such as impulse buying and any other unnecessary outlays. Take responsibility for your level of affluence after retirement by recognizing your vital role in your retirement planning process.

2. Learn finance basics

Some women think that finance as a discipline is a thing for men, but that’s not the case. As a woman, you should take time to educate yourself about finance issues from the internet and the many books available in the market. A financial consultant can also be resourceful in helping you come up with a suitable saving plan.

3. Work extra time

If you must spend that extra buck, then why don’t you consider working two jobs? You will get an extra income to spend on your miscellaneous needs. As you work on the additional time, you become psychologically prepared for retirement, and hence more active.

4. Pay off unproductive debt

To stay on the safe side, pay your credit card bills fully every month. And if that’s too much, try to pay more than just the minimum.

5. Create a home-based business

If you have to be at home, come up with a business idea that is feasible while at home. If your hobby can be monetized, then leverage on that. Some women make jewelry, crafts and other creative pieces that can generate income.

6. Plan ahead of time the lifestyle you want after you retire

Before you set your retirement date, ensure that you have the right amount of money at hand. After that, you can think of the kind of life you will want to live, where you would like to live and any other details. To be certain that your retirement plan will work; you may want to seek the assistance of a financial consultant.

If you are formally employed, there are chances that your employer offers a 401 (k) plan. This retirement benefits plan ensures that you have enough money to take care of yourself once you retire. The best way of getting your money upon retirement is through annuities that are sold by financial institutions like banks as well as brokerage firms. 

Unfortunately, due to lack of knowledge, a survey by TIAA-CREF found that only 14 percent of the 84 percent of Americans who wanted a guaranteed retirement monthly income had taken up an annuity-payment policy.

An annuity is an agreement between an individual and an insurance company, where the contract entails the person giving up the cash to a guaranteed regular income. Having an annuity plan gives you peace of mind because of the following reasons:

· Income boost

Annuities provide you with a reliable source of lifetime earnings. By putting some of your savings into an immediate annuity scheme, you get more income than the Social Security can provide.

· Steady lifetime payout

The insurance company you invest in ensures that you get a monthly stream of income. You have your principal investment and the dividends of your investment to depend on even if you outlive your stated life expectancy.

The savings that you generate out of a 401K plan determine the amount of cash you can invest in an annuity and in turn convert into a monthly pension. 401K plans help people maximize on their savings in the following ways:

  • With a Roth 401K, you contribute to your savings plan in terms of after-tax dollars. This means that you will withdraw your money free of tax and thus have enough to invest with.
  • A traditional 401K is usually pre-tax, meaning that you won't have to pay taxes for your account as your savings grow. When withdrawing your savings after retirement, you will pay taxes at the ordinary income-tax rate and of course at a lowered rate since you will have hit 65 years and above.
  • Some employers offer to match contributions made to 401K plans thereby increasing your overall savings.

About the author:

Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning company based in Goodyear, AZ. He has over three decades of experience working with investments and retirement planning, and over the last 10 years has turned his focus to self-directed accounts and alternative investments. 

Rick regularly posts helpful tips and articles on his blog at SD Retirement as well as MoneyForLunch, Biggerpocket, SocialMediaToday, WealthManagement, SeekingAplha, and NuWireInvestor. If you need help and guidance with traditional or alternative investments, email him at or visit

Wednesday, March 26, 2014

Where do the Over 50's Spend their Money?

The over 50's SWANS (Stopped Working and Now Spending) is one of the most cash rich demographics even in these times of recession and cut backs. Many of these over 50's have already purchased their houses and paid off their mortgages so the money that us younger generation are spending on rents and our own mortgages are free for their own use. 60% of over 50's receive non state pensions and more than 2/3rds of over 50's have said that the recession has made little to no change to their spending habits. So what do they spend their cash on?


Now that they've stopped working and have started spending their savings following their children leaving the nest, the over 50's tend to start to enjoy themselves again. Whether it be going to the theatre, out for meals and down to the pub for drinks with friends they have no work or children commitments left so they can enjoy themselves and their money.


Many over 50's have children and grandchildren spread around the world and with them now being the cash rich demographic with time to spare on their hands it is they, rather than the other way around of olden days, that does the travelling to see family members. On top of this, with their lack of commitments and large cash reserves they tend to take two or three holidays a year, often heading to warm and exotic places that they have wanted to visit but not had the chance until now.


What is life without a little risk? the over 50's generation are asking as they enjoy a flutter on the nags and occasionally the football matches at the weekend, with large accumulators with many selections and big payouts from small stakes favoured by the older generation. On top of this they enjoy the old favourites too such as playing live bingo at the local hall, while the more technically savvy of the over 50's who would have invested in computers or laptops to keep in touch with family on Skype and by email are tempting to play online bingo on sites like this one in an attempt to increase their cash surpluses too.


Having lived in their own purchased and now mortgage free homes for many years, many of the over 50's are now favouring renovating their homes to give them a fresh look and a new lease of life. Whether it be internal, such as new furniture, wallpaper or coats of paint, or external including redoing the garden or the brickwork of the house, the over 50's and their cash reserves are always looking to keep their residence fresh and up to date.


This is a big one for the SWANS as they are no longer working they have plenty of free time to do as they wish to do so. Whether it is growing their own fruits and vegetables in their allotments or travelling around the country to following their favourite football, rugby or cricket teams the over 50's have both the time and money to do this with a comfortable ease.

Clothes, Jewellery, Scents and Gifts

The over 50's generation like to look good and, as such, with the amount of cash readily available to them they enjoy purchasing clothes and jewellery that will make them both look and feel good about themselves. To top this off they spend a large amount of money on ensuring that they smell the best too so the top of the range perfumes and men's fragrances are on their lists too. It's not all about themselves either as they enjoy selflessly purchasing gifts for friends and family on birthdays, at Christmas and even randomly too.

Friday, May 10, 2013

The Retirement Savings Crisis - Infographic

It's terrible how ill prepared most of us are for retirement. It's not like we don't know it's going to happen. We have more than half of our lives to get ready for it. Sadly, some of those that did prepare have had their savings taken out by the current economic problems. 

If the government really wanted to do something about this they should have a method to start the preparation for retirement when we are born. At birth we give children a Social Security card, why not a retirement account also. Why wait to start something important like that 25 years later? What's your take?

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