Retirement has the potential to be an exciting time that is full of opportunity. With some passive income coming your way, it will be much easier to make sure that you can make the most of your retirement. Finding ways to earn passive income isn’t as hard as it seems, and there are plenty of opportunities that might surprise you.

Look to Dividend Paying Stocks

One way to start generating passive income is through dividend paying stocks like blue-chip stocks or index funds. Blue-chip stocks tend to be pretty reliable investments because you are investing in established companies with a solid history on the stock market. This allows you to make money off of your investment without taking as much risk as some other investments can take. Index funds are another low-risk option because you group with other investors to purchase stocks across an index, so you have a better chance of gaining funds over time.

Source: https://grow.acorns.com/why-to-invest-in-blue-chip-stocks/ 

Invest in Real Estate

Real estate investing is another great way to keep income coming in throughout your retirement. Investing in commercial real estate can allow you to have continual funding while you live your life in retirement. This can be a lot of work if you try to handle it all yourself, but you can make sure to find ways to make it easier on yourself. For example, hiring a property manager helps you relax and enjoy the passive income stream. That way you can enjoy your retirement even more.

Source: https://www.podium.com/article/commercial-property-management/  

Rent Out Extra Space

If you are an empty nester in your retirement, you likely have some space that you aren’t using. Renting out that space, whether it is a basement, a spare room, or a vacation home can be a great way to bring in some extra cash without expending too much time or energy. Think about the logistics before you get started and look for help if you think you will need it (whether that means hiring someone or going through an agency). With the right planning, renting out your extra space can be very profitable.

Source: https://www.wisebread.com/the-11-best-websites-for-renting-your-extra-space 

Your retirement is a time to be enjoyed and having extra money will help you to make that happen. Take time to think about the money, space, and assets you already have so you can make the best choice for your retirement. You can always try something new once you have gotten your current project down so you can continue learning and earning throughout your retirement.

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If you are planning on going into retirement soon, you might also be worried about what happens when you are no longer on the insurance provided by your job. You might be afraid of the possibility of a major injury and how you will be able to pay for it. Luckily, there are a couple options in place to help you pay for these kinds of expenses.

Long-Term Care Insurance

To clarify, long-term care in medicine is anything that requires more medical attention over an extended period of time. This includes things like chronic illness or some retirement facilities. For that reason, you can get long-term care insurance. The best time to apply is before you retire because it becomes more difficult if you wait until you need it. Insurance companies do not want to take on someone who already has illnesses because then they are not making as much money off of you than someone who is perfectly healthy.

Reverse Mortgages

Converting your home equity to cash is often an option to pay for a senior living facility. If you are moving out of your home, you no longer need it anyways, so a reverse mortgage allows you to make money off of something you already paid for. However, you cannot do a reverse mortgage unless your home is completely paid off. This poses an issue if you recently bought your house and have not been able to fully buy it yet. A similar option would be to sell the home instead.

Save by Deducting

Taking off from your taxes because of your retirement is a great way to save money that can be used to pay for long-term medical expenses. Typically, you can deduct any expense related to long term care if you are part of the insurance plan. You also need to provide evidence of what care you got and why you needed it. This helps you or your accountant to know how much to deduct off your taxes. Deductions are meant to benefit those who need it, and as a non-working citizen, you rely on any help you can get.

Long-term illnesses or homes are already expensive and often sad for everyone involved. By implementing these payment ideas now and in the future, you will no longer have to worry about your 80s and 90s because you know that you will be taken care of.

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It is quite common for seniors to be taken advantage of financially. As people age, their mental faculties are decreased, they become more trusting and optimistic, and they might not be as adept at making decisions. This makes them particularly susceptible to fraud and it’s important to know good practices to avoid it happening to you.

Only Buy From Reputable Companies

As you amass more wealth, you might want to turn to investing to help grow your money. If this is the case, you’ll end up purchasing some financial products. It’s important to only buy these products from reputable companies. Working with these companies can help you avoid fraud because they are trusted by many and are properly vetted. Make sure anyone you work with is properly licensed and ask them to prove it if necessary. You want to carefully choose a financial advisor so you can remain safe.

Read the Fine Print

While it does take extra time and effort, it’s a wise idea to read the fine print of any contracts before you sign anything. When reading over contracts, it’s easy to focus on the benefits you’ll receive. The fine print is where most of the drawbacks will be located, including extra fees, exclusions, and more. Reading the fine print can also help you see if you are being taken advantage of. For example, there are predatory loan services out there that use fraudulent tactics to take advantage of people financially. Predatory loans often have high fees and interest rates. Identifying these and other factors can help you avoid being taken advantage of.

Be Aware of Common Scams

People will try to take advantage of seniors because they believe it to be easy. If you want to stop fraud from occurring, you need to be aware of common scams and practices. Many scams will use relationships to get to your money. Someone might call pretending to be a grandchild in trouble and in need of money. Others will engage in online dating, claim to be in love, and then begin siphoning money. People may also claim you’ve won the lottery, that they’re collecting money for charity, or that they are offering you much-needed home repairs. In every situation, it’s important to ask lots of questions and thoroughly vet people before giving any money.

Unfortunately, some people will target seniors due to their age and status in life. If you want to keep yourself and your finances safe, you need to educate yourself on finances as a whole and especially on good practices. Doing so can protect you from fraud.

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When you finally get around to filing your taxes, it can be hard to remember all the steps and make sure that you don’t forget anything. Having a list of the most important elements can help you be more successful and make it through tax season unscathed.

Report All Taxable Income

When you are filing your taxes, you must make sure to report all of the taxable income you earned in the last year. In addition to full-time or part-time employment, you must send info from any contract or freelance work you did as well. Taxable income can include your salary or wages, interest, and rent from personal property. Keeping track of all your taxable income can be a challenge, but you must record it all so that you don’t run into any problems with your taxes down the line.

Tax Credits and Deductions

Once you have covered everything you earned, it is also important that you take care of any credits or deductions you qualify for. This portion is what helps you cut down on the taxes you owe. Federal solar tax credits reduce your system cost by 26%. You’d be surprised at the variety of taxes and credits available, so don’t be afraid to take a look at all the options so you don’t miss anything you qualify for.

To Get Help If You Need It

Filing taxes can be overwhelming, and though many options can help you file online, sometimes it helps to have help from an expert. If you find that you are struggling to get your taxes done or have complications in your finances, it is worthwhile to ask for help or go to a professional. Getting an outside eye can help you to end up with a best-case scenario and to avoid the stress of a confusing time filing taxes. Taxes are already stressful, so if you could use the help, don’t hesitate to ask for it. 

Filing your taxes is a yearly event, and it doesn’t have to be a huge hassle every time. Just remember to keep track of the basics and to get help if you are having trouble doing it on your own. Whether you get help from a tax professional or simply advice from a friend or relative, it can make your filing experience much simpler.

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Figuring out how to fund your retirement can be tough. There are a lot of options, from Social Security to 401(k)s and other retirement accounts, not to mention various investments you might have made over the years. Unfortunately, that money isn’t always enough to live on, in which case you may be considering getting a reverse mortgage. While it’s a good option for some people, there are things you need to know before you make a final decision.

Be Aware of Fees

When you hear the ads for reverse mortgages on the radio or other advertising methods, there are a lot of things you don’t hear. One of those things is the fees that are involved in a reverse mortgage. Upfront costs you can expect to pay include an HECM counseling fee, an appraisal fee, an origination fee, closing costs, and possibly mortgage insurance. Ongoing costs include your mortgage insurance premiums and loan servicing fees. Make sure you completely understand the cost of the fees you would be responsible for before signing on for a reverse mortgage.

Avoid Predatory Lending Practices

While the hope is that lenders have your best interests in mind and will work to get you the best deal possible, that isn’t always the case. Some lenders are far more interested in making as much money off of you as they can, regardless of the cost to you. Predatory lenders will offer above-average interest rates for high-risk borrowers. To avoid getting caught up in predatory lending practices, take the time to shop around, get informed, and read everything very carefully before signing.

It Isn’t Free Money

It can be easy to think of a reverse mortgage as free money, but that isn’t the case. Yes, the equity in your home is being liquidated for your use, but make no mistake - a reverse mortgage is a loan. At some point, that money will need to be repaid by someone. If you have a lot of equity in your home but are cash poor, it may be a good option. On the other hand, if you have ample income from other sources, it’s best to steer clear of reverse mortgages.

It’s important to make sure you know what you’re getting into before getting a reverse mortgage. There are fees you’ll need to take into account, and not all lenders will have your best interests at heart. It’s also important to keep in mind that it isn’t free money. Make sure you understand the ins and outs of a reverse mortgage before you sign up to make sure it’s truly a good fit for you.

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Much of your working life is likely dedicated to preparing for retirement when you’ll get to enjoy the fruits of your labors and be free from the need to work for a living. But what about after your retirement? Have you prepared your finances for your passing? It’s not the sort of thing you want to just leave on the plates of those you leave behind, but what can you do to prepare?

Review Your Will

A lot of attention is often given to the reading of the will and division of assets after a person passes away. Your will is your last chance to ensure that your final wishes are carried out when you are gone. If you find yourself incircumstances that necessitate revisions to be made to your will, take action to do so sooner rather than later. Pay attention to how assets will be divided, any requirements that need to be met for them to be properly disbursed, and who you intend the beneficiaries to be.

Make Funeral Plans

If you want to reduce the stress your loved ones feel after your passing, make your funeral plans in advance and have money set aside to cover at least a portion of the costs. The passing of a loved one is an emotionally exhausting time, and it can be tough to deal with making plans from scratch on top of that. Add in the financial resources needed to pay for a funeral and the stress only compounds. Consider all your options, especially if you want to make the funeral more affordable. For example, cremation is usually a more affordable option than burial. It can also be nice for your family to feel like they can still have a part of you with them after you are gone.

Consider Life Insurance

Depending on your situation, it may be wise to consider carrying a life insurance policy. Life insurance can give you peace of mind, knowing that the loved ones you leave behind will have some measure of financial protection in the event of your passing.Deciding if life insurance makes sense for you is an individual matter, so consider it carefully before making your choice.

Preparing your finances for when you pass is one of the things you can do to help take care of those you leave behind after you’re gone. Review your will periodically and make adjustments as needed. Decide what your funeral plans will be so putting them into action is less stressful for your loved ones. Depending on your situation, it may be appropriate to carry life insurance. End of life plans will look different for everyone, but preparing well in advance can help them go off without a hitch.

Read this next: How to Protect Yourself against Wild Market Swings in Retirement

Retirement is supposed to be the point in your life when you get to relax and enjoy the fruits of your labors. If you’ve planned well and prepared yourself financially, you’re more likely to be able to do just that. Many people choose to invest in the stock market to build financial resources to fund their retirement. While that can be effective, it does mean that you’re vulnerable to the wild swings that sometimes take over the market. So how can you protect yourself from them in retirement?

A Diversified Portfolio

The stock market tends to cycle from low points to high points and back around again. When the market swings, the tendency is for certain industries to trend downwards while others trend upwards. If your investments are all focused on a small handful of similar industries, you are more vulnerable to the trends of the stock market. Bydiversifying your portfolio, your investments will be more stable overall and you’ll be in a better position to weather market swings.

A Large Emergency Fund

You won’t get rich off of a savings account, but if you were relying on stock investments to fund your retirement and a market swing puts your income in jeopardy, having a large emergency fund saved up can make up the difference. You’ll need quite a large fund saved up if you’re going to rely on that for income though. The last dozen market downturns lasted roughly 14.5 months and took another two years to recover. You may find it difficult to build up a savings account that covers so much time, so finding other methods of temporary income may be necessary. You may find it helpful to take out a loan in some cases. Short-term loans are available to those with bad credit in emergencies, but these typically have high interest rates.

Be Disciplined in Your Spending

Overspending means that money won’t be there for you later. It’s just as important to follow awell-crafted retirement budget as it is in any other part of your life. If anything, it’s even more important since the bulk of your earning years are behind you. You don’t want to spend too much in the early years of your retirement only to find out later that you don’t have enough to pay for your needs anymore.

Protecting yourself against wild market swings in retirement is an important thing to plan for if your plan for funding your retirement involves the stock market at all. Having a diversified portfolio, building up a large emergency fund, and being disciplined in your spending can help you build up financial security. This preparation can help protect you from being vulnerable to wild market swings.

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It’s a very unsure feeling world, and making preparations for the future during pandemic times can seem strange at best. But it’s critical to continue (or begin) to prepare for retirement. It can be difficult to visualize what things are going to be the largest expenditures in the future, and what might be needed in order to make preparations. You can do this, if you know what to do to plan ahead.

Housing Expenses

In retirement, as now, your housing will be one of your largest expenses. It is best if you can prepare ahead to be able to purchase a home and pay off the mortgage prior to retirement, in order to prevent this expense from expanding over time. Buying real estate is a primary way to build wealth, and owning your own home free and clear is a large part of that eventual retirement plan. If you are capable of buying a suitable house and paying off your loan over time, it is a great way to diminish one of your largest retirement expenses. This does not need to be a large house, or the fanciest neighborhood, but an investment for your future. Even with a mortgage repaid, you must also prepare for repairs and needed household expenses as well.

Healthcare Expenses

Unfortunately, many institutions estimate that even with Medicare, you will need to pay 50-80% of your current annual healthcare costs after retirement. There are multiple Medicare plans to choose from depending on your budget and insurance needs. It’s important to research and figure out which is right for your family. As bodies age, they need more care and maintenance, and healthcare costs still are rising exponentially. Being able to prepare ahead for needed expenditures, surgeries, and eventual home healthcare costs is an important part of retirement preparation.

Taxes

The certainty of taxes follows each individual into retirement. Social Security is taxable at up to 85% of the benefit. 401K and IRA accounts are also taxable. There are, however, simple calculators for estimating what income and taxes might be needed for retirement income. This can help you prepare ahead for such major expenditures, in order to know what you need to save. Not being caught by surprise by taxes when you need money for healthcare or other expenditures from your IRA account is an important part of your preparation.

Preparing ahead for retirement can seem overwhelming, but it doesn’t need to be! There are many capable financial advisors and experts who can help you make sure that you are on track for all of your goals. Once the large expenses are taken care of, you will be able to breathe a bit easier, knowing that your retirement is secure and your family is protected.

For more tips on how to plan for your retirement, read this book!

Especially in cases where they are likely to outlive you, it is important to ensure your spouse will have the assets they need to retire when the time comes. Here are some simple tips for securing retirement for your spouse.

Maximize Spousal Benefits

First of all, maximize the spousal benefits of Social Security, pensions, and annuities. If you have the option of taking a lower payout so that your spouse gets money from a pension plan after you die, opt for the lesser portion now so your spouse continues to benefit from the plan.

It could also be a good idea to delay Social Security so your spouse has more to live off of when it comes time to retire. You can choose when you would like to begin receiving Social Security benefits. Retiring early will reduce your benefits, so think carefully with your spouse about when you would like to retire.

Life Insurance

Life insurance is another way to secure retirement for your spouse. If you were to die prematurely before saving enough for retirement, your spouse can be left with little money to retire on. Life insurance can make sure your spouse has enough assets to retire on.

When you retire, you may lose the life insurance plan you had through your employer, so looking for a different plan ahead of time is a good idea. Consider choosing a life insurance plan sooner rather than later in order to get the best deal. As a general rule, life insurance premiums of all kinds will be much cheaper when you’re young.

Spousal IRA

A spousal IRA is a great way to put money aside for your spouse’s retirement and assure that they will have what they need once they reach retirement age. Usually, in order to contribute to an individual retirement account, you must earn an income. If your spouse does not, he or she can still benefit from a retirement account.

With a spousal IRA, one working spouse can contribute money to an account in the name of a non-working spouse. Both spouses simply need to file taxes jointly and one spouse must have the income to cover both IRAs. You can double up on retirement savings even if your relationship only includes one income.

No matter your situation, there are many ways to make sure your spouse has enough money and assets for a comfortable retirement. With spousal IRAs, life insurance plans, and spousal benefits out there, you have plenty of options when it comes to securing retirement for your spouse.

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