Traveling, buying a cottage, getting that little red Ferrari you always wanted...sounds pretty much perfect, right? Not really.
The reality is, many seniors are finding themselves in less-than-perfect situations when it comes to retirement and are quickly realizing that their retirement savings just isn???t going to cut it.
Financial Burdens
Average North American families face financial difficulties every day. Unfortunately, while many families manage to pay off most of their loans by the time they hit 50, there are many seniors who are still facing difficulties well into their 60???s and 70???s.
Depending on when (and if) you had children, when you bought your first home and any other expenses over the years, it could be virtually impossible to have everything paid off by the time you turn 60. Some individuals are just turning 60 when their children are graduating high school, which means college savings are still very high on their list of financial burdens. Likewise, if you didn???t buy your home until you were 40 or 50, you may still be paying off your mortgage.
These expenses are only going to become more difficult to pay as you approach retirement and your income experiences a severe decrease.
Solutions
There are many ways to relieve some of the financial burden you may be facing as a senior. Chances are you have put a lot of money into your home. You know your home has a lot of value, which opens up a lot of opportunities. Talk to a financial advisor about home equity loans or reverse mortgages.
These will help give you some money now without having to pay through-the-roof interest rates like you would have to do on normal loans. Using some of this cash to pay for your children???s college savings will help save a lot of money on interest as well.
Another option is selling your home. If your children have moved out and it???s just you (or you and your significant other), there???s really no need for one or two people living in such a large home. Selling your home and buying something smaller (and less expensive) will open up opportunities for you to have a little extra spending money for trips, cars, cottages etc.
Spend and save your money wisely. It???s important to start saving as early as possible. And, if you are in financial difficulty, remember that you???re not alone. Millions of Americans are in the same position as you and everything will work out in the end.
Mary Sanders is an expert on senior finance and wants to help other seniors with their retirement planning needs. Mary worked as a finance manager for 34 years and has lots to share. For more financial advice, visit VivaPrime.com.
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