7 Hidden Ways to 10X Your Retirement Income in 15 Years or Less
We all want to slide into retirement with not a care in the world about our finances. But to set yourself up so you can lay poolside and not have money on your mind, we must plan and strategize tp the fullest.
While traditional strategies like saving diligently and investing wisely play a significant role, there are lesser-known techniques that can help you supercharge your retirement income.
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Here are the seven hidden ways to potentially increase your retirement income by tenfold within 15 years or less:
1. Take Advantage of Employer Matches
If your employer offers a retirement savings plan with matching contributions, make sure to take full advantage of it. Employer matches provide an excellent opportunity to grow your retirement savings faster.
Tim Parker, a 401k financial expert, writes in Investopedia, “Don’t pass up the opportunity to save for retirement if your employer offers a 401(k) plan. This is especially true if your employer matches your contributions. If you don’t take it up, you’ll be passing up free money.”
By contributing enough to receive the maximum match, you effectively double your money with each contribution.
2. Explore Roth Conversions
Consider converting a portion of your traditional IRA or 401(k) funds into a Roth IRA. While Roth conversions require paying taxes upfront, they can offer substantial tax advantages in retirement.
Retirement Planning Specialist, Mark Anderson told Charles Schwab, “Most should consider having a Roth IRA as part of their overall retirement plan because it offers federal tax-free growth potential and withdrawals.”
Roth IRAs provide tax-free growth and tax-free withdrawals, which can significantly boost your retirement income.
3. Leverage Health Savings Accounts (HSAs)
HSAs are powerful tools for retirement planning. These tax-advantaged accounts allow you to save for medical expenses in retirement.
When maximizing your contributions to an HSA and investing the funds for long-term growth, you can potentially build a sizable nest egg to cover healthcare costs during retirement and sent you up safely for the next 15 years.
4. Explore Rental Real Estate
Investing in rental properties can be a lucrative way to generate passive income during retirement. Purchasing and managing rental properties intelligently can provide you with a consistent stream of rental income, which can supplement your retirement funds. However, thorough research and careful property selection are vital to ensure profitability.
Purchasing now can be a life-changing investment that you can allow to grow for the next 15 years to come.
Liz-Brumer Smith adds in the Motley Fool noting, “If purchased wisely, the rental property should generate enough money from the monthly rental rate to cover its ongoing expenses, including maintenance, repairs, property taxes, and insurance, leaving you with extra cash each month to use as you please.”
5. Start a Side Business
Starting a side business can be an effective way to boost your retirement income. It allows you to generate additional revenue streams and potentially build a business that continues to generate income during retirement.
Whether it’s freelancing, consulting, or pursuing a passion project, a side business can have a significant impact on your financial well-being.
6. Delay Social Security Benefits
While you can start receiving Social Security benefits as early as age 62, delaying benefits can substantially increase your monthly payments. For each year you delay beyond your full retirement age, your benefit amount can increase by around 8%.
By strategically planning when to claim Social Security, you can maximize your retirement income.
7. Consider Annuities
Annuities can provide a steady stream of income during retirement. By purchasing an annuity, you can convert a portion of your retirement savings into guaranteed payments for life.
Annuities offer a reliable source of income, shielding you from market volatility and ensuring you have a consistent cash flow throughout your retirement years.
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While these hidden strategies can potentially boost your retirement income, it’s important to consult with financial professionals and consider your individual circumstances. Each approach carries its own risks and rewards, and what works for one person may not be suitable for another.
Combining these hidden techniques with sound financial planning and disciplined saving habits, you can take significant steps towards securing a prosperous retirement.
Remember, building a robust retirement income takes time, consistency, and informed decision-making. Start early, educate yourself, and make smart financial choices that align with your long-term goals. With the right strategies and a proactive mindset, you can pave the way for a financially abundant retirement.
The article above was refined via automated technology and then fine-tuned and verified for accuracy by a member of the GOBankingRates’ editorial team.
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