When one reaches retirement age, most would often rely on the pension allocations in order to cover for their basic expenses and needs. But did you know that there are ways wherein you can supplement your retirement income? Although it might come with certain risks, there are fool-proof ways wherein you can get more income to allocate for your expenses.
If you are in need of additional income, here are some ideas to consider:
1. Start off by securing their savings account in any FDIC-insured banks (most, if not all of their money) to ensure that they will be able to access it and keep it secure for when there are financial emergencies. Even though these banks often carry low interest rate, it is the security that you’ll be after.
2. Consider putting a small percentage of that savings account into CD. About 1 to 1.25% will be enough in order for them to enjoy a higher interest rate than the secured FDIC banks can offer. Take note that this will not guarantee a huge flow of extra income, but rather additional security for the money they already have with them.
3. Allot a portion of their savings account towards immediate annuity. This is a kind of investment that ensures they will receive payments for the rest of their lives. The monthly payments you receive will vary based on a number of factors such as gender, age, and interest rate.
4. You can also tap into your home equity. This will enable them to obtain lump sum or receive monthly allocations via reverse mortgage.
In the case of retired individuals, anywhere they can get additional income from would be really helpful, especially for those under regular medication for chronic condition. Make sure to experiment with each method suggested above to see what works for you.