From paying off debts pre-retirement to making budget estimates and rationing social security income, we’ve talked about a lot in the first part of this series.
But there’s more: post-retirement re-budgeting and life settlements.
Creating New Budgets
Needless to say, your post-retirement life is going to be different than your pre-retirement life. You’ll have to make adjustments to your budget that will dictate your financial future. Having a budget in place will help you make informed decisions as well as regulate your spending.
Your monthly expenses will change; this is unavoidable. However, this doesn’t necessarily have to be a bad thing. After all, a lot of regular spending will either be minimized, or cease to exist. These may include costs associated with commuting to work, office lunches, purchasing clothes for work, etc. Don’t think these are big expenses? As it turns out, the average American spends around $2,746 annually on office lunches. And an estimated $9,004 is spent on commute.
However, certain additional expenses are also expected. When “free” time finally rolls in, retirees prefer to spend part of their savings on traveling to dream locations and engaging in their favorite hobbies. Certain illnesses also require household help, which is an added expense that needs to be taken seriously.
The trick is to live your life the way you intend to while knowing how much money you’ll need to continue living comfortably.
We can’t emphasize this enough: SAVE. Making fidelity and IRA investments can ensure that you have a substantial amount saved by the time you near 60 years of age. $45,447—this is the average net worth, according to the Census Bureau, of Americans aged between 55 and 64. You should be aiming for more if you’re looking forward to a prosperous, quality post-retirement life.
One in every three senior workers has absolutely nothing in retirement savings—no 401Ks, no IRAs, and sometimes not even a pension. The amount of savings this one-third of all senior workers have going into retirement is a around $15,000. Their main source of income is social security (which we have already talked about in Part 1)—but additional money can be generated through life settlements.
Taking a Hard Look At Your Life Insurance Policy
Most people don’t even think about selling their life insurance policy post-retirement, but it’s one of your greatest financial fallbacks in times of need. This is a policy you might no longer want or need, so why not turn it into a viable source of income?
When you sell a life insurance policy, it’s referred to as a life settlement. Selling your life insurance policy can provide you with a cash payout that’s often times higher than the cash surrender value. Even life insurance policies that have no cash value such as term life insurance can be eligible for a life settlement.
To put it simply; if you qualify, you’ll receive a cash payout for your policy, and you’ll no longer pay any future premiums.
Remember when we talked about paying off your debts prior to retirement in Part 1? If that isn’t possible on your current budget, a life settlement is a great way to start that process Find out whether or not you qualify for a life settlement here and use this free life settlement calculator to get an instant estimate.
Finding a Broker for Life Settlements
If you want to ensure that you’re being paid the right amount for your life insurance policy, get in touch with us today. Your welfare is our priority. You can also give us a call at 800-591-2551.