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Practical Ways to Avoid Running Out Of Money in Retirement

Practical Ways to Avoid Running Out Of Money in Retirement

Retirement is on everyone’s mind. If you are not thinking about putting money in retirement, then you should. Maybe, you think you won’t need it because you can count on Social Security. Unfortunately, many retired people, who depend totally on Social Security, are struggling and barely getting by–and the government wants to cut their benefits further.

You may think you are too young to consider retirement. Even if you are young, there are many things that could happen to you before retirement that will affect your future. You may get injured and never work again, or you may have a family and not put money away.

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How can you ensure you have enough money when you retire? Let’s take a look at a few practical ways you can avoid running out of money for retirement.

Invest

Some people think that putting money away in an investment account is enough to make sure they have money for when they retire. Putting away money today will not guarantee that it will be enough to sustain you in 30 or 40 years. When planning for retirement, you must factor in inflation, or the fact that the cost of goods increases over time. Inflation can be pegged at about 4% to 5% per year. That means if you put away money in a savings account which earns 1% per year, you will not make enough money to cover inflation. Even if you saved $1 million, in 30 years, it may only be worth a fraction of that.

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Factoring for inflation, it is crucial that you invest for your retirement. If you invest in something that can yield you more than 4% or 5% a year, then you are ahead of the game. You do not need to earn that much per year, but you do need to average it over the lifetime of the investment. If you earn 10% one year and maybe 5% the next, then you can still be ahead.

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Practical Ways to Avoid Running Out Of Money in Retirement

     

    Alternate Investments

    One way to invest is through the stock market. Be advised: this is somewhat risky. You may want to look at alternatives.

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    One such alternative is in structured settlements. If you have a large amount of cash, you can pay cash for structured settlement payments. Some people get structured settlements from their insurance company or from court cases. However, many people prefer the lump sum award. This is where you come in. You can invest in such instruments and offer cash for their settlement payments. You give the settlement owner the cash they need (minus a percentage) and take over payments for them. This way, they get cash and you get a return for your investments. Paying for structured settlement payments is a great way to invest your money, and ensure you do not run out of money for retirement.

    Start Young

    When you are young, you have the greatest asset when it comes to investing–time. When you have a lot of time before retirement, you can ride the ups and downs of the market. It’s crucial to start young and invest as much as you can.

    Live Below Your Means

    Perhaps the most practical advice of all is to live below your means. When a person’s salary rises, his lifestyle often rises along with it, which inevitably requires more money. Living below your means now ensure that you will not run out of money during your retirement. One of the keys to saving a lot of money is to not increase your spending, even if you get bonuses or raises every year. If you are spending too much money, you will not be able to save for your future.

    In Summary

    There are many ways to invest in your retirement. By working now, you can relax in the future.

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    Last Updated on August 15, 2018

    30 Fun Things You Can Do This Summer Without Spending Much

    30 Fun Things You Can Do This Summer Without Spending Much

    Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

    Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

    Video Summary

    1. Visit a strawberry festival

    Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

    2. Have a picnic

    Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

    3. Camp in your back yard

      The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

      4. Take long walks

      Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

      5. Break a world record

      Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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      6. Go on a bike ride

      The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

      7. Join a gym class

        The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

        8. Find a new hobby

        The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

        9. Join a sports team

        Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

        10. Make a slip ‘n slide

          Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

          11. Make a treasure hunt for your kids

          Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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          12. Visit a free festival

          Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

          13. Visit the zoo

            Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

            14. Take a road trip

            Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

            15. Play ultimate frisbee in the park

              Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

              16. Make your own ice cream

              Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

              17. Invite your neighbors over for a BBQ

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                When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

                18. Get a summer job

                For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

                19. Attend a charity event

                Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

                20. Visit a national park

                National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

                21. Visit your local comedy club

                  Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                  22. Make your own hammock

                    Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                    23. Read in your new hammock

                    Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                    24. Watch a movie outside

                    Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                    25. Take a hike

                      Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                      26. Learn how to fly a kite

                      As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                      27. Work out at the park

                      American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                      28. Take your dog to the beach

                        One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                        29. Make a summer smoothie

                        Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                        30. Attend a free yoga session at the beach

                        No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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