Securing Your Retirement: Expert Advice for a Stress-Free Future
As a 63-year-old retiree, you’re concerned about your retirement income and want to ensure your financial security for the next 15 years. You’ve got a solid foundation with a passive income of $45,000 per year, Social Security benefits, and a mortgage that’s nearly paid off. However, you’re aware of potential risks that could impact your financial stability.
Understanding Your Risks
Inflation, renter risk, and long-term care costs are just a few of the potential risks you need to consider. Inflation can erode your purchasing power, while renter risk can leave you with unexpected expenses or vacancies. Long-term care costs can be a significant burden, with estimates suggesting that a single person may need around $157,500 saved after tax to cover healthcare expenses in retirement.
Boosting Your Retirement Income
To increase your retirement income, consider reducing your monthly costs by cutting back on non-essential expenses. You may also want to explore part-time work opportunities that won’t disrupt your Social Security benefits. Another option is to review your investment strategy and ensure it’s aligned with your long-term goals.
Managing Your Rental Properties
Your rental properties can provide a steady income stream, but they also come with potential risks. Consider adopting the 50% rule, which suggests setting aside half of the annual rent to cover operating expenses or emergency issues. A financial planner can help you analyze your real estate portfolio and determine if it makes sense to sell one of the properties over time.
Seeking Professional Advice
Working with a financial planner can provide you with a second opinion and help you navigate complex financial decisions. Look for a fiduciary who can provide unbiased advice and help you create a comprehensive financial plan. A one-time plan can cost between $1,500 and $7,500, depending on the complexity of your finances.
DIY-ing Your Finances
If you prefer to manage your finances yourself, make sure you thoroughly evaluate your situation and create a roadmap for success. Consider hiring a pro to help you create a financial plan, and then take the DIY route from there.
Conclusion
Securing your retirement requires careful planning and attention to detail. By understanding your risks, boosting your retirement income, managing your rental properties, and seeking professional advice, you can create a stress-free financial future. Whether you choose to work with a financial planner or DIY your finances, make sure you’re taking proactive steps to protect your financial security.
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