Planning for retirement can feel like a minefield. However, while most seniors rely on Social Security and savings in their 401(k) accounts for these years, it’s important to not overlook other sources of retirement income.
Different sources of income can help you weather financial storms like high rates of inflation.
Retirement Income You May Have Overlooked
Many seniors benefit from having income that comes from multiple sources. According to The Motley Fool, there are five sources that you may have not considered.
- Dividends – These are payments that companies make to shareholders of the company’s stock. If you have been investing in stocks for a while, you may have already accumulated a nice nest egg of dividend income.
- Home equity – The value of your home equity can be tapped through a reverse mortgage or home equity line of credit (HELOC).
- Selling a car or possessions – If you have a paid-off car or other assets, selling them can provide a nice chunk of cash.
- Unused items in your home – You may be surprised at how much money you can get for items you no longer use or need.
- Downsizing a home – Moving to a smaller home can free up cash that can be used for retirement.
The assets that you might take for granted could actually be valuable sources of retirement income. The best way to navigate finances in retirement? Talk to a financial advisor for sound advice.