Building a better nest egg
Having enough to retire on is about more than just stocks
Reverse mortgages have become popular with some retirees. With such a loan against the equity in a home, you can receive the proceeds either as a lump sum or as a set amount each month. You must be at least 62. A reverse mortgage is best suited for those with considerable equity in a house and few other retirement assets--and who know they want to stay put.
Yourself
You have abilities, experience, and talents that make you a retirement asset. While not everyone wants to put off traveling or devoting time to a favorite hobby, working a few extra years could pump up your savings dramatically. William Arnone, a partner with Ernst & Young's Human Capital Practice, says delaying retirement makes sense. "More and more, this is becoming a very rational approach to the problem," he says. "What I'm hearing is people saying, 'The two years that I lost in the bear market are the two years I'm going to put off my retirement date.' It doesn't always work out 1 for 1, but for many people, it's a smart thing to do."
Arnone and other planners point out that you will also increase your Social Security benefits. "The vitality of being in the workforce will help keep you younger, too," says Cook. Many employers permit, even welcome, an offer to work a reduced number of hours a week or a month, even if you're getting pension checks from the same company. And with many businesses slow to add employees, they may welcome a valued worker back in a job-sharing or contract-work role. You might also be able to find part-time work with another company in your field or a related one. Do some homework to find out what needs the company might have, and make a specific proposal for part-time work that matches their needs with your skills.
You might click by charging an hourly consulting or project fee, especially for companies that have seasonal or contract-specific employment needs, such as defense firms. A detailed proposal, based on your knowledge of the firm's needs and done in the style and format required, is necessary. Cook notes that both public- and private-sector employers are increasingly outsourcing work to keep payrolls flat. In negotiating, you might remind the firm that hiring you for a set period saves the trouble of hiring a new employee--who may need to be laid off when the work ends.
If you enjoy writing or photography and have clips or a portfolio, query small book and magazine publishers and local newspapers. Turn a green thumb into financial green by selling the plants and flowers from your garden, perhaps getting into landscape planning. Hire yourself out as a baby sitter for bed-and-breakfast inns--a pursuit becoming especially popular with retirees. Whatever you do, make it something you enjoy.
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