When we think of ways to get financially independent, then we’re likely to think about the steps that we need to achieve it right now. However, we all live a lot longer these days, often living beyond our capacity to work for a living. When we’re older, our options to protect and make wealth are more limited, but that doesn’t mean that there are none. Here, we’re going to look at how you ensure the financial independence you have earned even as you get older.
Ensure an income no matter what
If you don’t have an income in your retirement, then you’re looking at a consistently dwindling set of resources in your savings that might not see you as far as you would like. You can save in a retirement account that provides an income, but if you’re focused on building true wealth, it might be a better idea to start investing in assets that pay off dividends. There is a higher risk to these, so it’s likely best to make sure you diversify between the riskier and the safer investments.
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Use what assets you can for income
In our old age, we are likely to have all the assets that we will ever own. When that’s the case, work out what you want to use personally and what can be used to help you keep building wealth and maintaining an income. Working with a property manager, you can downsize and move into a smaller home if you’re living in the family home alone. There, you can rent out your home to keep an income going in your older age or sell the home to immediately free up a nest egg for yourself.
Protect yourself in the event of bad health
One way to see yourself losing control of your finances as you get older is to fall ill. You might not have the presence of mind to make decisions to protect your wealth at that time, which is why it’s important to make provisions for things like a living will while you’re still very much in control of your faculties. Ensuring tight control over your care and money can prevent arguments amongst the family while also cutting down on unnecessary medical bills.
Make it all easier to track
If you want to make sure that your finances are being used to pay for the essentials and that you’re not forgetting anything, then you want to make sure that you’re automating your finances as much as you can. When you have assets, you have more payments to manage and, in retirement, you’re likely to have more payments coming in as well. You should have all your forms of income deposit directly to your bank. You should also set up automatic payments for bills, insurance, and any debt repayments so it’s less likely that you will let them slip, too.
The single best thing you can do to protect your financial independence in your old age is to start making the decisions and investments that safeguard it for the future right now.
Photo by Andrea Piacquadio
