If you’re struggling to get that retirement savings tucked away, don’t stress. It’s unfortunately not uncommon for Americans to have trouble in this department. Or for Americans to have trouble saving at all. Whether it’s low-wages to blame or pressure to keep-up-with-the-Joneses, we’re flat out bad at it. The good news is that there are a handful of tactics you’re able to do in your later years to get caught up.
Get invested in real estate
When you start your retirement savings late, traditional investments like stocks and bonds have less time to accumulate returns. If you were to, however, put that money into buying a rental property, you can have a steady stream of income for as long as you can keep tenants in the building. Whether or not this is a strategy for you will depend on your situation and income. Before you start any investments, seek out a trusted financial planner. Pursuing real estate as an investment option isn’t for the passive investor, but it’s well worth it.
Use your own home for income
If you own your own home, it can potentially be an excellent source to tap into for retirement savings. Here you have a few options. Homeowners can directly get into the equity that’s been poured into the house through either a home equity line of credit or, more drastically, a reverse mortgage. You can also sell your house outright and move into a smaller/cheaper house, putting the funds from the sale aside in savings. Or you can simply rent out a room and earn money that way. Renting out is a great option if you live near a college, students make good tenants.
Eliminate standing debt
Some financial experts would say that step one in retirement savings is to eliminate current debt. Makes sense, right? In order to fully focus on saving for retirement, you first have to clear away your credit card debt, medical debt, etc. Monthly payments on debt only detract from you being able to save for retirement, plus the potential monthly interest only eats into your income. Make your debt your priority, take it seriously, tackle it, and move on. Once you’ve offloaded the most dangerous debt, eliminate less expensive debt like mortgages, car payments, and any remaining student loans. Getting rid of those monthly payments will allow you to redirect your money where you want.