If you are in your 60s with too little retirement savings, you aren’t alone. The median balance in defined contribution plans of those ages 55 to 67 is just $87,571, according to the Vanguard How America Saves Report.
Financial concerns are a fact of life for America’s retirees. In fact, an AARP survey found that 20% of adults ages 50+ have no retirement savings, and more than half (61%) are worried they will not have enough money to support them in retirement.
It’s not a comfortable financial position, as a $50,000 nest egg only allows you to withdraw around $2,000 in annual income, assuming you follow the 4% rule to set a safe withdrawal rate. With Social Security only replacing around 40% of pre-retirement income, $2,000 to spend each year from savings simply won’t cut it. You must find ways to boost your savings.
Be wary of quick money making schemes. Bernie Madoff’s Ponzi scheme, which ran for decades, defrauded thousands of investors out of tens of billions of dollars. Investors put their trust in Madoff because he created a front of respectability, his returns were high but not outlandish, and he claimed to use a legitimate strategy. In 2009 Madoff was sentenced to 150 years in prison.
My solution to this dilemma was a Reverse Mortgage on my house. It is an expensive choice but I can continue living in my house for the remainder of my life and Social Security pays my other bills.
Forget Multi-Level Marketing Businesses as a source of income. They are mostly Pyramid schemes. They can look remarkably like legitimate MLM business opportunities and often sell actual products, maybe even ones you’ve heard of. But if you become a distributor for a pyramid scheme, it can cost you and your recruits — often your family and friends — a lot of time and money that you won’t get back.
Coast Contact 