How can I save more for retirement?
Many Americans are not ready to retire and
will not be ready to retire when they reach the age of
60, 65, and probably even not at the age of 70 either.
So how can you save more for retirement now so that you
are ready to retire when you become of retirement age?
One way to save more for retirement is that you can
access the equity in your home to pull out cash to put
into investments such as the stock market, IRA accounts,
money market or mutual fund accounts, etc... Many
homeowners use the equity in their homes everyday to
access cash for investments. This is extremely
beneficial when mortgage rates are extremely low and you
can make more in interest from your investments than
what you are paying through your monthly mortgage
payments. Therefore accessing the equity in your home is
just one of many ways to save more for retirement.
If you are not currently contributing to any retirement funds, or you are not contributing the maximum amount to a retirement plan you may want to consider refinancing your home and using a Pay Option ARM to help save for retirement. A Pay Option ARM offers a minimum payment that can drastically lower your monthly mortgage payments. The money you save on your mortgage can be put towards your retirement planning. If your employer offers a match on a 401(k) and you are not maximizing your contribution that will always be a better investment, it is FREE money.
Seek out a financial planner. Let them know how much you would like to invest monthly; it can be as little as $25.00 per month. Over the course of time that small amount of money can turn into a big amount.
Don't forget that there are mutual funds out there that are triple tax free (from local, state and federal) taxes. Even with a slightly lower interest rate returns down the road are really great.
Reverse mortgages can be an option for retirees to generate monthly income.
Take your tax return and invest it in a Roth IRA, the contribution may even be tax deductible. $5000 returning just 10% over 30 years would snowball into 80,000 with no other contributions. By adding just $50 a month to your initial contribution you can raise that amount by a quite impressively. To figure out how long it will take your money to double at a given rate of return you can use the rule of 72. This rule takes the rate of return on your investment divided into 72. For example a rate of return of 10% would double your money every 7.2 years.
If your employer offers a 401k or similar retirement plan, contact your human resources department to discuss your options. Many employers will even match a certain portion of your retirement contributions.
Harnessing negative amortization loans such as reverse mortgages and cash flow or pay option loans is becoming increasingly popular as more borrowers are discovering the truth about the illiquidity of and lack of return on equity in the home. Separating cash from equity for investment in tax
privileged accounts requires close coordination between yourself, your mortgage planner, and your financial planner to help turn your single biggest liability, your home, into an asset on which you can finance your retirement.
Interest only loans and debt consolidation refinances will help free up money to help maximize your ability to invest money into
retirement accounts also.
If you feel you can manage rental property, and can
consistently maintain at least an equal income -vs- your mortgages. Purchasing Rental
property is an excellent way to build wealth for retirement.
If you have any questions regarding our products, you can contact
us by calling or e-mailing us and we'll get back to you
as soon as possible. Thanks!
Information listed above is to be used for educational purposes only and is not guaranteed