I would like to share some interesting points I came across in an article by Suzanne Sharma which appeared in advisor.ca concerning how to stretch your retirement income.
Even though we do our best to plan for retirement, we sometimes run into unforeseen circumstances. For example, the markets may have not performed as you expected, or perhaps you are helping an adult child who has lost his job.
No matter what the reason, here are some tips to help you get more cash during your retirement years.
1. Rent part of your Home to get a monthly income stream. Screen carefully though, to avoid getting tenants from hell.
2. Downsize or move to a rent controlled apartment. You can use the capital from the sale of your home to earn income. Keeping in mind, there will be an adjustment to living in a smaller space.
3. Find solid investments such as GIC ladder, or consider a syndicated mortgage.
4. Consider investing in a life annuity, such as the Prescribed Annuity discussed in an earlier post.
5. Go back to work. A main benefit here is that you don’t have to cut back on your spending, however, if you are not physically fit, this might not be an option.
6. Work from home, or open a Consulting business. Your business costs will be tax deductible.
7. Take a line of credit against your home. You will get instant cash, however, you will now be in debt, and could still run out of money. Additionally, interest rates will not remain low forever.
8. Cutting frivolous expenses is a great way to gain extra cash, but the result may be having less fun during your retirement than you had hoped.
If you are retired, or planning to retire soon, contact me today to help you adopt the best options to make your retirement years, more prosperous, contact me today.