Wednesday, March 5, 2014

Creative Retirement

Most Baby Boomers will have to be more creative when it comes to retirement than our parents had to be.

After reading about this woman whose elderly dad is in much better shape financially than she is, I relate to being in a completely different situation than my parents. My folks are elderly but live quite well on three military pensions. They downsized from a house to a condo 20 years ago, so their bills are small, yet their income is higher than it was when my dad was working.

I, on the other hand, only have the downsizing in common with them. We have no future pensions around here, so we'll be living on what we were able to save up while self-employed. We paid quite a bit more into Social Security than people who worked for an employer, but will be lucky if S.S. lasts long enough for us to get it all back.

Like the woman in the article, we're doing our best to manage costs now, in order to prepare for retirement. One thing this woman does that's very wise: she rents living space from a friend. Many financially challenged Boomers should consider buddying up with someone if they currently live alone. Dividing expenses and helping each other out will make the path much smoother.

And, of course, downsizing as soon as possible is a great idea for Boomers regardless of their current financial situation. Giving up the McMansion for the little house has saved us so much money, and as a bonus, has given me more time to do what I want to do than I ever could have imagined. (Learn more about it HERE.)

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