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Maximizing Retirement Income: Tips for Financial Security

Well, you’ve blown out the candles on your retirement party cake – or are getting ready to. You’ve worked hard to get here, putting all your energy into the daily grind. And now, a world of self-discovery, self-fulfillment - and yes, self-indulgence - awaits. This is your time.

In the absence of those steady paychecks, this new era of freedom will require some careful financial planning. Terms like fixed income, budget, and Social Security benefits will now be part of the conversation. Investment strategists will provide you investment advice catered to fellow retirees and throw around concepts like low-risk and high yield.

Though most of us would rather get a root canal than sit down and accurately assess the health of our wealth, advance planning is critical to optimizing this long awaited and much deserved chapter.

It’s Never Too Early to Begin

As you approach that retirement date, the first step is analyzing just how much you are spending and try to predict how much you will need going forward. One of the best retirement investing tips we can give is to evaluate recurring costs like health insurance and taxes, work on eliminating debt, and plan for an emergency fund. Life has a way of throwing curve balls and a little cash cushion can make all the difference. You might want to consult online resources like AARP’s retirement calculator to help you run the numbers.

Diversify

As your investment counselor will tell you, diversifying is always an important investment strategy for seniors. A portfolio with different stocks, bonds and other various types of investments is a safeguard against major losses and an important piece of the post paycheck financial puzzle. The closer you get to retirement, the more you will want to focus on investments with limited risk and consistent yield. Younger investors can afford to incur higher risks as they have more time to recoup any major losses. At this stage spreading your money across a variety of low-risk investments – with no more than 3% of your assets in any one stock - will help increase the stability of your portfolio.

Best Bang for the Buck

Investments with a moderate dividend yield can potentially allow you to enjoy the use of dividend income and leave the bulk of your money in the market. Experts recommend a target yield of 2.5% to 5%.

Annuities – or Not?

A well-known investment tool for retirees, annuities guarantee a regular income stream for a certain number of years. However, annuities come with some complexities like high commissions and fees. Ask your investment advisor if annuities are a good choice for your income level.

Social Security

As you begin to add up the retirement numbers, it is important to see just how your Social Security payment fits into the equation. Visit My Social Security, and you can easily sign in and create an account which will give you all the pertinent information about your benefits.  

Getting your financial house in order – which ironically may include selling your actual house – will allow you to create a realistic budget and give you the peace of mind to enjoy retirement. Book a tour of the Overture senior apartment community of your choice today. Once you experience the resort worthy facilities and the reality of stress free, turnkey living,  you’ll be calling the realtor on the way home.

Overture senior living apartments are focused on filling up your new found free time with an unlimited list of activities and social opportunities. That’s great news for newly retired married couples who might have to adjust to spending so much more time together.

Because you know what they say. Marriage is for better or for worse – but not for lunch!

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