Grow Wealthier During Retirement

Written by Jeremy Biberdorf

Most people think of retirement as a time to live as simply as possible with the hope savings accumulated through life won’t run out before the end of your life. While this is the reality that many older adults deal with, it’s not absolutely necessary. In fact, it’s possible to grow wealthier during retirement. It may require some reallocation of assets, but if you’ve prepared for retirement, it may surprise you to know that your wealth can actually grow as you go.

1)    Eliminate Inefficiencies. It’s important not to waste money. Take a careful look at your life and make those difficult changes. If you have poor credit, you’ll pay much more for loans for the rest of your life. Choose OneMain personal loans to see some practical examples. If you are currently renting, consider buying a home. This will build personal equity, another leverage point for future borrowing. Restrict monthly spending as much as possible. If you don’t need it, don’t buy it. And if you feel you must have it do without something else as a tradeoff.

2)    Focus on Enrichment. Retirement is a time to live gently. Fortunately, gentle living is not terribly expensive. Spend time exercising, meditating, reading, taking classes, and hanging out with the people who mean the most to you. Not only will filling your days with healthy activities like these preserve your wealth, it will make you healthier so that you enjoy your retirement more.

3)    Increase Saving. No matter what age you are, you should be saving as much as possible, at least if you hope for a retirement that’s free of financial anxiety. Your savings will be the basis of future security. Even if you are well on your way to a comfortable retirement, saving is an integral skill to keep active. If you are able to work part time, through a job or a profitable hobby, you can continue to add to your savings.

Now we come to the investment portion. Once you’ve controlled spending and increased your savings, you want to allocate your financial resources in a way that will build wealth without requiring too much in the way of active management. Here are some ways to do that.

1)    The 4% Rule of Investment. Let’s say you have $1,000,000 invested in index funds through Vanguard. Investments like these grow, on average, about 8-10% per year. Retirees who withdraw 4% of their investment balance every year ($40,000 in this case) still see their investments gaining value, at a faster rate than money is being withdrawn. This is an incredible way to gradually accumulate greater wealth during retirement, even as you’re living off of the investment balance. The less you take out to live on, the larger balance you have gaining value.

2)    Real Estate and Other Passive Income. Some people build wealth through ownership of property, companies, and more. If you have a property that yields a positive cash flow through renters or other forms of tenant, you can live off of this income or use it to increase your wealth. Once you’ve paid off the property which, by the time you retire, may have already happened, you’ll enjoy that entire monthly rental balance in your pocket less the on-going costs to maintain the property.

3)    Make Sure You Know About All Assets. By the time you retire, you will likely have worked a number of jobs, lived in many houses, and had an incredible variety of experiences. In this time, you may have received inheritances, retirement accounts from work/pensions, property, and other assets. It is important to make sure you know what you own, and to have it allocated in the way that best provides ongoing security. By knowing exactly what you have you can better maximize your returns. Get rid of low performers and build an efficient portfolio of quality investments.

Retirement doesn’t have to be a time spent watching your resources move inexorably to zero. You may be able to create a situation in which you money grows significantly, even when you no longer have direct income from your career. This takes time, hard work, and making the best of your opportunities prior to retirement, but if you are able to hit these targets you’ll have a prosperous retirement with a large estate.

5 Skills You Will Need in Retirement

Just because you make it to your second act does not mean you will necessarily enjoy smooth sailing ahead. Sure you have worked your butt off for years and years but the work is not over. Get ready to face plenty of challenges over the coming decades including numerous bumps in the road and a fair share of sudden detours not foreseen when you meticulously planned your future.

As with many facets of life, a happy retirement is best insured when certain skills exist and can be called upon as needed. You cannot prepare for every contingency but it never hurts to be armed and ready.

Here are 5 important skills/talents to add to your retirement arsenal.


Not as found at the circus but rather the handy ability to manage multiple distractions at once. Although living the life of a retiree removes the need to balance the vicissitudes of the job there will be plenty new scenarios that leave your running around like a chicken with its head cut off. The fact is more often than not retirees find themselves busier in retirement than before. With only 24 hours in the day how do you fit in all those wonderful activities and interests you have postponed until now? I admit one of my biggest fears prior to retiring was running out of things to keep me busy and engaged. While I do occasionally have a slow day more often I can be found late in the afternoon wondering where the time went. Getting everything in – workouts, hikes, gardening, reading, playing ball with the dog (at least 5 times a day or he is perturbed), piano time, miscellaneous odd jobs, an afternoon nap, etc. – truly can feel like a three ring circus.

Discoverer of Creative Outlets

Without a job to monopolize your hours you become responsible for filling your daily dance card with activities and meaningful moments. Those most successful are able to step outside of previously restrictive comfort zones. The fact you have not tried something new in the past ten years need not taint your future. Now that you can why not give it a try? Experiment with a bit of this, try your hand at a little that. Don’t let preconceived notions and self-imposed limitations hold you back. Living the retirement you dream is all about doing what you want with your enviable free time.

fishermen at sunrise

Once retired, even if with your spouse, you will find you have time alone. This can be difficult if you thirst for social interaction but rather nice if you are fine with a little solitude. Knowing a bit about you – likes, dislikes, passions, never-in-this-life to be avoided situations, dreams, ambitions – can make the transition easier. Take time to feel your way around. You might discover you like those quiet moments alone with your own thoughts free from distraction or time constraints.

Bean Counter

Living on a budget is generally a reality of retirement. If you cannot increase the money coming in you need to manage what goes out. Successfully managing this ongoing balancing act helps keep you financially liquid through the coming decades. Beware big dollar investments in unnecessary items. Shop around for the best price. I rarely make a purchase online without comparing prices on With competitive prices and free shipping Mr. Bezos is hard to beat. When paying for a service such as cable it helps to put in a call every six months or so to see if you can get a better deal. And don’t forget neighbors and friends who are happy to share their experiences and advice regarding cost saving strategies.

Best Deal Scrounger

One of the best parts of retirement is no longer waiting for weekends to have fun. Since you can now pursue your passions during the week a whole new world of deals is available. Hotel room rates are typically best Sunday through Thursdays – keep your eyes open for buy one get one night free or similar specials. Plane fares can be whittled down when you have the freedom to depart and arrive on the most economical dates offered. Early dinner fares are much more reasonable and since you control the calendar why not take advantage. It really pays off to shop around. Here is a helpful site I discovered specializing in various savings vehicles including a recent Retail Savings Guide for Baby Boomers.

Explorer of Passions

Not everyone retiring has a passion(s) to pursue. Or maybe it is more like they have not yet discovered what truly lights their fire. It could be they have just not had sufficient free time to think about what they really want to be doing. It’s difficult to find one’s passion when every waking moment is focused on climbing the corporate ladder or just keeping your head above water. But wouldn’t it be nice to have a passion to pursue when you retire? Now that you can wouldn’t you like to spend your time doing what really matters to you, what really lights your fire?

The secret is to find that inspiration. I don’t think there is any simple recipe to uncover what you are most passionate about. Each of us has to pursue our own path. For me it was a matter of trial and error. I tried out a few interesting avenues, quickly abandoning a bunch, giving up on others a little later. But in the end I identified a handful of activities/pursuits that bring meaning and happiness to my retirement. Armed with those I look forward to each day. And who says I am limited to what excites me today? I am free to try my hand at whatever may intrigue me as I continue my journey.

The Importance of Retirement Planning, Pitfalls to Avoid & Top Tips to Follow

Written by Rick Pendykoski

Retirement planning is a crucial aspect of personal finance, and one that should be at the top of your list. Let’s look at why it’s important, what mistakes you should avoid and some expert tips on doing it the right way.

Why is Retirement Planning So Important?

Today’s workers want to be financially secure, as well as completely independent and free to follow their passions or interests after they retire. Without a proper plan and a sizeable nest egg, however, it becomes impossible to maintain the standard of living they’re used to.

Many people have no choice but to continue working after retirement, simply because they don’t have enough savings or income sources to keep them financially comfortable.

Today, it may seem that retirement is so far that you can afford to think about it later in life, but it’s always closer than you think. Proper retirement planning is especially important in today’s scenario, where inflation, low interest rates and market downfalls may also be working against you!

Retirement planning(imbreyandassociates)

Top 5 Retirement Planning Pitfalls to Avoid

Here are 5 of the most common mistakes people make, and why you should avoid them:

  1. Not Defining Your Financial Goals

This is the biggest mistake you could make, since you can’t get to a certain place without knowing what it is! The majority of people haven’t clearly defined their financial objectives for retirement, written them down, or started planning how to achieve them. When you commit to your goals by putting them down in writing, you can calculate how much you need to save and start taking action to make them a reality.

  1. Saving Too Little or Starting Too Late

It’s much harder to reach your retirement goals and maximize your tax benefits when you’re putting small sums of money in an IRA or other retirement plan every now and then. After all, the most important element of effective retirement planning is time. When you start saving and investing for your retired years early in life, and saving as much as possible, your money can grow into a large nest egg sooner.

  1. Expecting Pension/Social Security to Cover You

It’s no longer enough to rely on your employer’s pension plan or social security benefits, since many of these plans are under-funded already. There’s no guarantee that your employer or the government will be able to provide what you need, especially with longer life expectancy rates. Age often brings unexpected health-related expenses, and you don’t want to be left stranded or dependent on someone else.

  1. Spending Retirement Income Too Fast

Many retirees take out too much money from their nest egg every year, which depletes their savings as well as the potential growth for that money. Since people are living longer, it’s quite likely that either you or your spouse will need retirement income for 30 years or more, and you may also want to leave something to your kids. After you retire, the rate at which you withdraw your savings will determine how long they last.

  1. Investing Too Conservatively or Aggressively

This is another common mistake, where people worry about putting their savings at risk and end up with too little income in retirement, or place all their hopes on high-risk investments only to lose everything they saved. It’s important to diversify your portfolio, balancing the low returns from safe investments with potentially larger gains from riskier ones. Consult a financial advisor for guidance on allocating assets effectively.

Expert Tips for Retirement Planning in 2017

If you want to be financially comfortable later on in life, put these tips into action now:

  • Educate Yourself – The ‘fiduciary rule’ going into effect in 2018 requires brokers and financial advisors to put your interests ahead of their own commissions and earnings. Knowledge is power, so learn everything you can about the latest tax rules, contribution limits, growth benefits and investment options available.
  • Diversify Investments – With a self directed IRA, you can choose exactly where your retirement savings will be invested. Seek expert advice on building a balanced investment portfolio that leverages gains against risk, for maximum long-term benefits.
  • Avoid Debt – Debt is the biggest threat to your retirement security, so work on paying off existing loans, starting with the most expensive ones first. Stay away from future debt by making frugal lifestyle choices and avoiding unnecessary expenses.
  • Save More – Increase your savings every month/year and automate them if possible, so it becomes a habit. If you want to leverage tax benefits while saving for retirement, contribute as much as possible to IRAs and other tax-smart plans.
  • Manage Risk – Other than planning retirement income, set up an emergency fund and invest in insurance coverage that protects you against potential risk. Anything could happen between now and the time you retire, so take the right steps to protect your savings.
  • Plan Your Estate – Protect your loved ones in case of your untimely death with an estate plan that includes insurance. Other than defining asset distribution and providing for dependents, proper estate planning can also boost your retirement income.

If you haven’t already started putting money away for the golden years, it’s definitely time to start. Otherwise, you may find yourself facing a life of dependence and insecurity instead of the comfort and freedom you’d want to enjoy after retirement.

Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ. He regularly writes for blogs at MoneyForLunch, Biggerpocket, SocialMediaToday, NuWireInvestor & his own blog for Self Directed Retirement Plans. If you need help and guidance with traditional or alternative investments, email him at or visit