How to plan for retirement if you’re broke

Category: Retirement

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If your retirement is approaching, but you’re worried about being able to afford it, you’re not alone. There are ways to have a satisfying retirement even if you have little to no savings.

Here are some ways to pull off a retirement plan even if you’re financially strapped:

Hold on to your home’s equity

When you retire, having that equity to fall back on, if needed, can be a lifesaver if a real emergency should arise.

Avoid claiming Social Security early

Although this is a popular decision amongst many, it can be a bad idea. The decision on when to claim Social Security benefits can wind up costing you thousands of dollars. Generally, the longer you wait the more money you will receive.

Downsize

In order to retire comfortably, it is crucial to take a long, hard look at your living expenses and income. You’ll have more options if you act early. Options often become more restricted when your back is against the wall. Begin with housing, which is likely your largest expense. Explore the other possibilities that are available to you: renting your home out to a tenant, getting a roommate, or selling it, for instance, are all different ways to cut back on a lot of expenses, or even make you a profit. If you sell or rent out your home, consider downsizing by moving into a less expensive home.

Contact Peachtree Financial Solutions

Planning for retirement doesn’t have to be stressful or difficult. If you’re receiving payments from an annuity or structured settlement, you can turn those periodic payments into a lump sum of cash now. The money you receive from an annuity funding or settlement funding transaction can help to make retiring less stressful.

Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.

Tags: financial planning, saving, Social Security

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