In fact, three to five percent of retirement income could be provided by a specific strategy used by married couples. You can find out more about this strategy here.
Congratulations if you’re about to retire, and enjoy your new freedom! You might be wondering about Social Security and the best strategies for making the most of your monthly benefit payments.
Read on for five options which can boost your earnings from your income before retirement and reap the benefits of Social Security after it starts to grow.
1. Sell your home during retirement
If you earn enough during retirement, you can sell your home. This strategy will add to your benefits. The money saved can also be used to pay off your mortgage, or fund an existing retirement or child’s college fund.
If you have enough income, or your older spouse has a low enough income, you should consider downsizing. It could be a positive move to boost your Social Security payments by parting ways with your big, family home.
2. Open a Roth IRA
Your retirement savings are taxable, but you’ll never have to pay taxes on a Roth IRA. Put more cash into this account each year to qualify for large contributions, since your tax rate might be lower. You can also use your Roth IRA to fund retirement.
Use Roth IRAs for your retirement savings (even after your wife passes away), since she’ll be dead. This will still be in tact for your family. It’s a great option for surviving spouses.
3. Reduce your expenses
Once your life revolves around caregiving for a seriously ill spouse, you could consider reorganizing your life to include reduced expenses.
This could include:
Itching to cut your household budget? Do some research and keep on this course until you reach your goal. You’ll be surprised at how much you can cut.
Itching to cut your household budget? Do some research and keep on this course until you reach your goal. You’ll be surprised at how much you can cut. Your first stop is to see how much home security you can save with the click of your mouse. Rather than wasting money on massive security systems, you can find a combo package which matches your budget.
Next step is to look at your homeowners insurance premiums, and to save some money in your auto insurance. Many people live to old age without buying new cars because their insurance keeps getting higher.
Investigate how you can reduce your costs and ensure that they won’t hit when your family needs you most.
4. Open an IRA for your employer
Estimate how much money you will be able to contribute to an IRA, and you’ll find it’s not difficult to open an IRA for your company. If your employer sponsors a 401(k), there are a multitude of plans that you might be able to take advantage of. You can call your employer to learn more about these offerings.
5. Taking Social Security early
Social Security gives out benefits after a person reaches the full retirement age. However, if you start taking your Social Security benefits at the earliest possible age, you can collect an extra payment.
If you can work for another few years and hit the full retirement age, then you can stay on your parents’ health plan and reap the benefits of Social Security in retirement.