Most people rely on IRAs, 401(k)s, and Social Security benefits to fund their retirement. An article in U.S. News & World Report explored some other options to boost your retirement income. Here are some highlights.
Renting out part or all of a home.
If your children are on their own, you may have more house than you need. Renting out a room, or making improvements like a kitchenette and bathroom to create an “apartment” within your home, can have a dramatic impact on your income. If you don’t like the idea of having a permanent housemate, websites such as HomeAway and Airbnb allow you to rent out a room or your entire home on a temporary basis.
Taking out a reverse mortgage.
If you are a homeowner age 62 or older, you can use a reverse mortgage to receive regular payments based on the equity in your home. However, when you move out of the home or pass away, the balance of the reverse mortgage becomes due. In many cases, the home must be sold to repay the loan. This is why it is important to discuss your plans to take out a reverse mortgage with family members to avoid unpleasant surprises in the future.
Downsizing your home.
Selling your existing home and purchasing a less expensive one can increase the value of your nest egg and provide additional savings on utilities, property taxes, maintenance costs, and house payments.
Selling off assets.
Perhaps you have valuable possessions that you don’t use much anymore, such as a second vehicle, motorcycle, or recreational vehicle. Why not sell them and use the proceeds to finance the kinds of activities you enjoy now? Similarly, you might have a large number of collectibles or equipment from a hobby that no longer interests you. Reselling them on eBay or Amazon is a relatively easy way to create additional income.
Taking part in the gig economy.
You can earn money in your spare time by providing rides to users of transportation companies like Uber and Lyft. A host of other companies, such as TaskRabbit, Instacart, and DogVacay, allow you to earn additional income by doing lawn care, grocery shopping, walking dogs, and more.
Everyone’s financial circumstances are different, and what could be a great solution for one could be disastrous for another. That is why it is so important to have a team of experts working for you. You should talk to a financial advisor before you make a big decision. If you don’t have one, give us a call and we’ll recommend a few that our clients have worked with successfully.
For information about other ways to augment your retirement income visit http://money.usnews.com/money/personal-finance/articles/2016-08-18/10-nontraditional-ways-to-fund-your-retirement?int=personalfinance-rec.