How To Rescue Your Retirement
Knowing how to rescue your retirement can mean the difference in how comfortable or uncomfortable the golden years may be. Whether bad investments were made or he simply didn't save enough, taking control of retirement is necessary. These particular tools can be utilized by almost anyone, regardless of how close or far away they are to retirement.
- Assessment. One of the most crucial steps in rescuing your retirement is knowing exactly where he stands. Particularly, how much has been lost and how much additional funding is needed. While this may seem like a difficult process, there are free retirement calculators available to help him determine this. However, it is recommended using a retirement calculator from a company that is not trying to gain his business. In addition to this, his personal accountant or other financial consultant can help with these needs.
- Diversify. Many experts will repeat this over and over. According to AARP, those that do not diversify funding can lose a substantial amount of money. To rescue your retirement, relocating assets is often necessary. AARP also endorses selling of individual stocks to do so. This can save his retirement funds from greater losses and yield greater returns.
- Save more. Socking away additional money for retirement should be considered a priority. Although this may mean making lifestyle changes and budget cuts now, it can rescue retirement. In an effort to "play it safe", many preparing for retirement may think it is wise to put this money into bonds and/or low yield savings accounts. However, this will not rescue retirement funds and will cost him in the long run.
- Additional funding. Those that are close to retirement or that have already retired may want to consider other options available. Working a part time job, annuities and a reverse mortgage are all things he may want to think about. However, it is important to note that annuity funds and reverse mortgages are only short terms solutions. AARP recommends that these should be last options utilized later in life.