5 Best Money Moves To Make Before Retiring

James Holbach  Mon, August 14, 2023

How To Be Wealthy in Retirement: Experts Share the 5 Best Money Moves To Make Before Retiring

Retirement. Imagine it. Dropping out of the rat race forever, enjoying the time you have left — being with your family, pursuing the hobby you could never make time for, finally taking that dream vacation.

Unless you were born rich — and if you were, you probably wouldn’t be reading this — you know it’s not going to happen without a lot of saving and planning. You’ve seen the generic advice everywhere. Max out your 401(k), cut your expenses, go back to school so you can make more — but there are a million paths to financial security, and some of them might surprise you.

Here are five real-world examples of people that made smart moves that allowed them to enjoy a worry-free retirement.

Downsizing

Dennis Shirshikov, head of growth at Awning, shared the story of Tom and Lisa, who were able to secure a very comfortable retirement by significantly downsizing their lifestyle.

“As their retirement neared, they opted to downsize their lifestyle significantly. They sold their five-bedroom house in the city and bought a smaller, but comfortable, two-bedroom home in a quieter suburb. This not only reduced their living costs but also provided them with a considerable amount of cash from the sale, which they put into diversified investments.

“Now, they live comfortably off the income generated from their investments, and they’ve even had the chance to indulge in regular travel, something they’ve always dreamed of.”

Investing In Rental Properties

Shirshikov also related the story of retired school teacher Sarah, who achieved her retirement dream by investing in rental real estate.

“Instead of choosing to put her money in typical retirement accounts like a 401(k), she opted for a more unconventional approach.  By the time she retired, she had a portfolio of five rental properties, each providing a stable monthly income. To make it even more hassle-free, she engaged a property management company to deal with the daily operations. Now, in her retirement, she enjoys a steady stream of income that more than supports her lifestyle.”

Never Stop Working — Sort Of

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https://finance.yahoo.com/news/wealthy-retirement-experts-share-5-130030640.html