Most Americans look forward to retirement, but it also comes with many financial obstacles. As a future retiree with no children to look after — or to look after you — you have unique challenges to deal with as well as unique benefits to look forward to.
No matter whether you want to live the retirement life of your dreams or you worry about making ends meet without a family safety net to rely on, the one uniting factor is to tap into your financial assets sooner rather than later. How can you do this? Here are three methods any retiree can execute.
Get a Reverse Mortgage
Do you have a large amount of equity in your home? Don't want to move in order to tap into it? A reverse mortgage is an excellent tool. You'll receive money each month and the lender receives your home when you no longer need it.
A reverse mortgage is perfect for those with no kids to inherit the home. Instead of saving that equity for a sale, you can use it now — to travel more, indulge yourself, care for the upkeep of the house, or meet monthly expenses. Whatever you use it for, a reverse mortgage could be your ticket to a better retirement.
Cash Out Your Life Insurance
Do you still pay on life insurance coverage? For those who have no one who relies on them for an income each month, life insurance may be an unnecessary expense. If you've paid into it for many years, consider cashing out at this stage and using that money instead to build an emergency fund, have some fun, or make needed repairs or upgrades to your home.
Often the cash-out chick is a tax-free return of your capital and it means lower monthly expenses as well — a win-win situation.
Buy an Annuity
If you have accumulated savings but are worried about outliving it, consider an annuity. With this investment, you contract with a company to give them chunk of money now and receive a monthly payment for a set number of years — or until you pass away. Because the annuity company invests this money, the returns on such agreements can often be more than if you tried to invest it yourself.
Which of these ideas could help a childless retiree tap into their money now to create a more stable future? No matter how you do it, you're sure to benefit for many years to come.
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