Things to Do If You're Nearing Retirement With No Savings

Avoid These 4 Retirement Mistakes
in Your 50s

Not diversifying your portfolio

The mistake that most first reponders do is not that they don't invest in their 401(k), but they ONLY invest in their 401(k). Getting into real estate and renting your properties out is a great secondary income stream for pre-retirees.

Assuming that the market
will remain solid

Don’t assume anything as the market is unsteady and uncertain. As humans, we tend to look at the future through today’s lens. Because of this, pre-retirees often make false assumptions. that's why it is so important to diversify.

Neglect regular medical checkups

You're probably thinking this has nothing to do with finances, but it does. Many first responders are finding out that the cost of health care is one of the greatest threats to their financial security in retirement.

dipping into your retirement accounts

One of the most devastating retirement mistakes in your 50s is to take money out of your retirement savings. For example, if you take out a 401k loan, you will be subject to severe tax penalties (if you don’t make every repayment on time) and also miss out on any growth opportunities if your account is in repayment.

VIDEO: These Investment Ripoffs

No Retirement Savings? Here’s
what to do

6 Steps For Entering Retirement Without a Savings Account 

If you are nearing retirement without any savings, although there is much work to do, don’t panic. Throughout the years while working in your community as a first responder, many things happened in your life that you didn’t foresee happening. Maybe you got divorced, forced to file for bankruptcy, or you’ve accumulated medical expenses that is just unbearable.

Whatever the reason, you are in your late 50s, and you find yourself nearing retirement without any savings. First thing I’d like you to know is that you are not alone, about one in five baby boomers has less than $5,000 in place for retirement according to a survey conducted by Northwestern Mutual. 

The benefits you’ll receive from Social Security (if at all) will provide some income for you when you’re no longer working, but there are extra steps you can take that will ensure you’re financially stable after you retire. 

Keep Working 

If you’re in your 50s or nearing 60 without a savings account, keep in mind that working a little longer at your current law enforcement agency could put you in a better financial situation later.

You can also find creative ways to cut down your living expenses and even your hobbies can be utilized to bring in additional income. You can also take a good look at the luxury items you have to see which ones you can sell for cash, and your loved ones may be able to assist you as well.

As you near retirement, there are also a few government programs you can take advantage of that will provide you with financial assistance when you need it. 

If you’re going into retirement and don’t have a nest egg, here is further information about what you can do to make retirement the best time of your life. 

Put Off Your Social Security Claim 

If you don’t have health issues that will prevent you from working past the age of retirement, you can continue to work to have the money you need for your current expenses. This will also allow you to increase your Social Security payments in the future.

Your benefits from Social Security will go up every month that you delay on payment collection until you turn 70. Gainer Financial and Insurance Services president and retirement income certified professional Roger Gainer shares that when people wait to collect on Social Security from the ages of 67 to 70, they’ll save between $80,000 to $100,000 during those years. 

Reconsider Housing Choices 

If the mortgage is paid on your home, selling your house and moving into a smaller, more affordable residence like an apartment or retirement community. This could bring in extra cash for you and reduce the amount of your ongoing expenses to maintain your residence. For instance, your utility bills will likely be if you move into a smaller home and you won’t have to pay as much in mortgage or rent if you downside or move to a more affordable part of town. 

Gainer asserts that there are also ways to save if you prefer to stay in your current home. There are several chances to use a reverse mortgage to bring in retirement income. A reverse mortgage is form of a loan that allows you to borrow against your home’s value and you’ll get the funds in one lump sum. Or, you can choose to get the money in a regular increments that you can use as a line of credit. 

If you live alone, you may want to consider getting a roommate to cut some of the costs associated with maintaining a home. Or, you may want to rent out a room in your home to a local college student or family member so you won’t have to take on the responsibility of all home-related costs by yourself. You can even see if other retired friends and family want to live with you so you can split the cost of living. 

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Make Money Off Your Hobby 

It’s never been easier for seasoned Americans to make extra income as it is nowadays. for example, if you enjoy hunting you can start a Youube channel, or a vlog about hunting. If you are camera shy, you can do things behind the scenes like blogging.

Both youtube and creating a blog can pay handsomely if your content is interesting enough to build a following. If you want to use your law enforcement experience as asset, why not blog about law enforcement events, or even your career. 

Heck you can even blog here if you’re not shy about sharing your experiences with Outside The Badge Readers. Andrew Piatek points out that several Americans spend a good portion of their lives committing hours to a hobby that could generate income for them.

Piatek is a financial planner who specializes in retirement income and is based in Orchard Park, New York.  He suggests setting up an Etsy account to sell needlework or create a website to provide design services. If you’re familiar with your city or town, you may even be able to get a job as a tour guide. 

List Your Assets For Sale 

If you have two cars but don’t use both of them, you may want to consider selling the other car. Consider how often you use your boat, RV or even a motorcycle, and list these items for sale if you know you’re not going to utilize them.

Leslie Tayne says that retirees should evaluate all their physical and monetary assets and determine their worth, since these items could help make thriving after retirement a little easier. Tayne is a financial attorney and the founder of Tayne Law Group based in New York.

You can check out Facebook Marketplace and eBay to sell antiques or designer clothing and furniture at an estate sale or garage sale to bring in extra funds. 

Speak With Your Relatives 

Talk to your family members about your situation when it comes to retirement. When you speak with the ones who love you, you may be able to come up with solutions you didn’t think about before.

One of your adult children may offer to help you move in with them in exchange for watching your grandchildren. Or, you may find that a family member is also looking for help with living expenses and you may be able to share the costs of bills or car maintenance. During your retirement, you may not be able to help fund college for your grandchildren or allow adult children to live with you due to your financial situation.

Tayne asserts that when you’re honest about what you’re able or unable to do by looking at your finances, you’ll be more likely to say no when you can’t take on more expenses. Coming up with a financial plan that will truly work for you will give you more peace of mind as you enter retirement. 

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