Nearly 60 years ago, a writer calling himself Bob Belmont published a modest little book with an immodest title: How to Retire Without Money!
Work with an investing pro and take control of your future. But the work must be wholesome, interesting,” he explained. Working longer will give them time to build up their savings and will reduce the number of years they’ll need to live off of their savings. Among them. When you realize that your goal is retirement, a complete escape from this rat-race which has driven you to desperation, you’ll find that a year’s time devoted to building up a basic amount of capital with which to get started, can actually be fun.”. Belmont’s view of debt was unambiguous and stern: “By whatever means it takes, get rid of it.
Many of today’s near-retirees are in even worse shape than those Belmont was writing for, not only carrying a mortgage or two but significant credit card debt as well.
Be confident about your retirement. Here’s how a SIMPLE IRA can help.
“By all means, if you retire, find some useful and soul satisfying activity to absorb your hours,” he wrote.
Rebecca Lake covers financial planning and credit for The Balance. If Mr. and Mrs. C. can max out their retirement savings options, they could have more than $250,000 set aside for retirement by the time Mr. C turns 70. Where should I invest the money I’m able to save?
Take Stock of Your Retirement Assets Creating a retirement plan requires first carefully evaluating your existing assets, including cash savings, employer pension funds, annuities, and retirement accounts like 401(k)s or individual retirement accounts.
It may have contributed to Reynolds leaving the party around the time of its publication. If you've built up substantial equity in your home, you can create income through a home equity loan or a line of credit (HELOC).
That’s roughly the equivalent of $850 a month or $425 today — $10,200 or $5,100 a year. For this reason, the best option may be splitting your money between retirement savings and debt payoff. Opinions expressed by Forbes Contributors are their own.
Communication will go a long way in helping your loved ones understand your shift towards prioritizing your financial future. "Reverse Mortgages." Sign up for Medicare as soon as you're eligible to reduce out-of-pocket health care costs. FTC Consumer Information. From Sci-Fi Writer to Retirement Adviser. Turbocharge Retirement with 401(k) and 457(b) Plans, Retiring Early and What It Means for Your Social Security, 8 Keys to Avoiding a Reverse Mortgage Nightmare, Learn About Social Security Income Limits If You Want to Keep Working, The 7 Best Credit Counseling Services of 2020, 64% of Americans Aren’t Prepared for Retirement — and 48% Don’t Care, Important Things to Consider When Planning for Retirement. Check with your local Council on Aging, who may have a list of programs and can help you contact these administrators. My husband’s employer does have a matching program, which we have maxed out.
Next Avenue is public media’s first and only national journalism service for America’s booming older population. Belmont and his wife seem to have lived in all of those places and many more, eventually settling in San Miguel de Allende, Mexico. With that kind of background, writing about an idyllic retirement where cash was of little consideration might not have been a total stretch. Next Avenue is public media’s first and only national journalism service for America’s booming older population.
The same survey found that nearly half of Americans polled had no money set aside for their later years right now. But for Mr. and Mrs. C. as well as millions of folks in their position, Social Security will play a big role in their monthly income.
“I am 60, and my husband is 63. Unfortunately for Belmont/Reynolds, he would barely reach traditional retirement age himself. Past performance is not indicative of future results.
If things are such that it will take a year for you to get free of your present debts, even by cutting every corner, then postpone retiring until you are free of them,” he wrote. He died in 1983 at 65, leaving behind an impressive shelf of science fiction and one quirky, but engaging, book of retirement advice.
If early retirement is a goal that appeals to you, it’s worth taking a closer look to see what it means in practice.
“If you put it off today, you will find even more reason to put it off tomorrow and a double amount of reason to put it off next month,” he wrote. If it’s still available when you retire—great!
Just remember to check your local zoning laws to make sure this is permitted. There may also be programs to assist you with food and nutrition. All rights reserved. "Retirement Age." In addition to selling physical possessions and downsizing your home, the following cost-cutting measures can help you create a rosier retirement outlook: You may also qualify for various state and federal aid programs.
What Are Traditional IRA Withdrawal Rules? © 2020 Forbes Media LLC. If not, you won’t miss it. “Make a hobby of saving money,” he suggested. (For a 2017 approach to the work-and-play in retirement notion, read this Next Avenue interview with the authors of the new book, Victory Lap Retirement.). Busy beats idle.
Well, a solo 401(k) may be a good option for you! Your situation may be different from Mr. and Mrs. C’s, but you probably have some of the same questions and concerns. She has a decade of experience reporting on personal finance topics. How Much Do You Need to Save to Retire by 40? Alternatively, you can obtain a reverse mortgage, which generally doesn't require you to make payments, unless you're no longer living in the home.
One of Reynolds’ sci-fi specialties was conjuring up alternative economic systems and utopias in far-off galaxies.
was not without its critics, of course.
Military retirees and dependents may also qualify for additional programs. As much a manifesto as a how-to guide, How to Retire Without Money! However, this triggers a reduction in your benefit amount., If you elect to take benefits early, consider earning supplemental income by working part-time. Under the name of Mack Reynolds (more formally Dallas McCord Reynolds), “Belmont” was among the most prolific science fiction writers of his day. Find an investing pro in your area today. He did it by drawing, in part, on his Socialist upbringing and an early career as a Socialist Labor Party organizer.
He has a small retirement fund; I have none,” she said.
Mr. and Mrs. C. could consider downsizing to a smaller home they can pay cash for. But it doesn’t have to be!
Fortunately, a sound financial plan can remedy this situation. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.
A single year of frugality may not be enough anymore, but trimming some expenses pre-retirement can still pay off.
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I think I paid a quarter for it — and it was worth every penny.
“If you choose to live on $45,000 per year, you could claim Social Security at age 62 and fully fund your retirement until age 90.” 3. If you own your own business, you might be wondering what to do when it comes to building a nice retirement nest egg. Also, don't forget to consider the tax implications of claiming Airbnb rental income. Make inexpensive home improvements that increase energy efficiency and reduce utility bills. Though Belmont didn’t believe people needed piles of money to retire, he didn’t advise starting out broke, either. Our daily content delivers vital ideas, context and perspectives on issues that matter most as we age. And Mr. and Mrs. C. can both contribute $6,500 each to their own Roth IRAs. She recently wrote to tell us about her situation.
Cut back on spending and get in full-on, gazelle-intense saving mode. Saving can be satisfying.
Consider renting out a room or part of your home on Airbnb.
But his point on reining in housing costs is as valid as ever. Amazon.com lists of a raft of “where to retire” guides and sites like the Retirement Living Information Center and International Living are also rich resources. Belmont focused much of his book on the question of where to retire, urging his readers to consider some unconventional, less-costly possibilities: houseboats, trailers and small farms, to name a few.