Today's challenging economy presents obstacles to early retirement or even to retire on schedule as planned. It requires using both some conventional and unconvential wisdom to retire successfully. Most investment professionals rely on traditional methods such as choosing investments primarily based on past returns, calculations for distributing assets upon retirement and asset allocation for proper diversification. Those stategies are good, but there are a few unconventional strategies for retiring today that must not be overlooked.
- Be a savvy homeowner. Owning and living in an appropriately-sized home with a mortgage proportionate to retirement income is always wise. While some may recommend having a home paid off by retirement, it can actually be used as leverage against your tax liability. Downsizing into a smaller home may be a wise choice.
- Change your spending habits to live more within your means. During retirement, the income source from an employer disappears. Social security and personal investments are used to replace income but in some cases they may not completely fill in the gap that the paycheck has left behind. Shopping around for lower priced insurance and certain utility providers (cell phone, home phone, cable, internet, etc.) can prove to offer significant monthly savings. Not making new debt will also help you to live within your means.
- Reduce over payments on taxes, on investment charges and on investment advice. This one may require you to seek the help of a qualified financial advisor. Some investment strategies can be put in place to reduce the amount of taxes you pay on your retirement income. Additionally, a financial professional can reveal ways to lessen the charges you are currently paying on your investments. Lastly, investment advice should always save you money in a way that you are not able to or it's not worth the money.
If you have questions about financial planning or implementing strategies that can help you retire today, please visit www.planandact.com and start by taking your free financial assessment today.