This was originally published on Monday, April 16, 2018, in the Pacific Daily News. Click here to subscribe to the PDN.
When you retire, you may find it difficult to survive on a fixed or limited income. Many people feel they don’t have enough money saved to live comfortably during their golden years.
How much you will need to retire comfortably differs for everyone. There are several strategies you can practice to increase your future income.
Debt. One of the largest expenditures is debt. Paying down debt, whether it’s a mortgage, credit card bills or other money you have borrowed is important. Debt can weigh you down and it certainly eats into your limited income. Retiring with a large amount of debt will restrict you from enjoying life and making other necessary payments.
If you can pay off as much debt as you can before retiring, you can use that money for things you want to do.
Diversify. Many people think Social Security and their 401(k) will be enough for retirement. It is for some, but a little extra income won’t hurt, especially for those who are closer to retirement and are playing catch up.
Add to your portfolio with dividend-paying stocks. Dividends may not be guaranteed, but if you diversify your investments you may have a better chance of additional income.
Postpone retirement. You may want to continue working into retirement age to help generate extra cash. Even a part-time job will bring in some money. Something as simple as a cashier at the local grocery store or an administrative assistant can bring in additional cash.
Many retirees become bored sitting at home. This may be a way to keep a schedule and structure. It’s also an opportunity to turn a hobby into a small business. Baking, woodworking or tutoring can bring in extra income and you get to set your schedule.
Bonds. You can make bonds work for you by buying a variety of bonds that mature at different times.
Cost of living. When you retire, stretch your money. Consider the cost of living where you live. Will a hundred dollars buy you food for a week or for a day? You may want to consider moving to a location where the cost of living is lower.
Michael Camacho is president and chief executive officer of Personal Finance Center. He has more than 24 years of experience in retail banking and at financial institutions in Guam and Hawaii. If there is a topic you’d like Michael to cover, please email him at firstname.lastname@example.org and read past columns at the Money Matters blog at www.moneymattersguam.wordpress.com.