10 Uncommon Retirement Advice Tips

Written by , February 5, 2013

10 Uncommon Retirement Advice TipsMost consumers have heard the standard retirement advice so many times that they probably think they know all that there is to know about retirement planning. They know that it’s essential to start contributing to their IRAs and 401(k) accounts as early as possible in their careers, and that they should look to maximize their contributions each and every year, and take advantage of employer matching contributions. These often repeated guidelines are important because they provide a strong foundation for a retirement savings plan.

There are many additional steps you can take, and tips to consider, even if you are already following the baseline retirement advice.

Here are ten uncommon retirement advice tips to consider:

    1. Think Long Term as Well as Short Term. One mistake that some new retirees make is shifting their entire portfolio from growth oriented investments into safe but relatively low yielding income investments. Once one enters retirement there’s still a good chance consumers will still need their nest egg to support them for at least another 20 or 30 years, so growth investments still have a place in a portfolio.

    2. Consider a Co-Housing Arrangement. Some retirees have discovered that a “co-housing” environment, where two or more retired individuals or couples live under the same roof, can provide a valuable social outlet and help keep living expenses affordable.

    3. Don’t Worry About “Keeping Up” With Friends. The pressure that some adults feel to match the outward financial success of their colleagues and neighbors can continue into retirement. Avoid the temptation to take lavish vacations or purchase a new car in retirement simply because friends have done so.

    4. Consider Annuities. If the prospect of actively managing your entire portfolio is overwhelming, then consider purchasing an annuity. These insurance contracts can pay you a predictable stream of income over the course of your life, and can comprise all or part of your portfolio.

    5. Consider Moving Overseas. We often read about different areas of the country where living expenses are relatively low. There are also countries in Europe, Central America and South America that are even less expensive, and very welcoming to American retirees.

    6. Stay Active. To enjoy your retirement fully you’ll need to stay in the best possible health. Staying active throughout your retirement years can help make this happen.

    7. Stay Educated. Don’t forget to exercise your mind, too. Staying mentally active – whether through courses at your local community college, or perhaps even going back to finish a degree you started earlier in life – can help you stay healthy.

    8. Pick a Firm Retirement Date. While your actually retirement date will depend on a number of financial factors, the best way to make it happen is to have a firm goal in mind. Pick a specific retirement date and do everything you can to meet that goal.

    9. Don’t Retire. Of course, as long as you’re healthy and you enjoy your job, there’s no reason to stop working simply because you reach a certain age. Many individuals choose a “working retirement.”

    10. Set Up a Charitable Foundation Before Retiring. Some investment brokerages permit you to set up a private charitable foundation for as little as $5,000 or $10,000. By doing this before you retire you can maximize the value of your charitable deductions while your income is high, and give yourself a means for benefiting your preferred charities throughout your retirement.

Consider these tips to come up with the best possible retirement plan to fit your individual situation.

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