Retirement is ultimately a game of time and careful planning. The more time you have to save, the more time interest has to accrue, building your nest egg from a tiny sum to a massive fortune. Even saving just a little bit in your twenties can greatly increase your long-term savings, just as a few extra years of work can help you play savings catch-up. But what if early retirement causes your savings to cease entirely? The right plan is partially dependent on the reason for your retirement.
If health issues have rendered you unable to work, then you’ll need to find other strategies for building wealth. If you’re still able to work, but can no longer do so in your chosen field, you still have ample opportunities for catching up. Indeed, many retirees continue to work part-time years after their official retirement date.
Negotiate Your Retirement Package
Retirement packages are often negotiable, particularly if you’re being pushed into early retirement. Before accepting such a package, talk to a lawyer, a financial planner, or both. They can advise you about the relative fairness of the package, offer you strategies for negotiating a more favorable exit plan, and advocate on your behalf if your employer is being unfair.
Get a Part-Time or Consulting Gig
Retirement doesn’t have to mean sitting at home watching The Price is Right day after day, week after week, year after year. Keep your mind healthy and occupied by picking up some consulting work. In the working world, your senior status might have been a liability. But as a contractor, your years of experience and connections can be exceedingly valuable. You might even be able to land a part-time consulting gig with your previous employer. Online freelancing sites can also be a ready source of quick part-time work.
Tap Into Your Home’s Equity
If you need cash now and are struggling to pay your bills, home ownership has a significant upside. A home equity loan typically boasts a lower rate and fewer risks than traditional loans and credit cards. And if you’re over the age of 62 and own your own home, you’re probably eligible for a reverse mortgage. This approach offers you fast tax-free cash that you discern what’s selling well now do not have to repay as long as you remain in your home. Invest the money in a business or high-interest account, or simply use it to pay your expenses. The choice is up to you.
Start Selling Things
That basement full of “junk” might be more valuable than you realize. There’s a collector for just about everything, from old VHS tapes to rare and limited edition laptop bags. Spend some time on Ebay or vintage sales sites to see what’s hot right now. And don’t forget about your clothes. What’s old to you is vintage to someone else. Markets change quickly, so do regular research to discern what’s selling well now. Once you establish a following of buyers, you might be surprised to find that you actually enjoy online selling.
Selling can be particularly beneficial if you plan to downsize. Rather than donating everything to Goodwill, you can instead turn a profit on the items you would have been parting with anyway—leaving you with more space, more cash, and the option to move to a smaller place.
