Retirement comes for most of us in the later stages of life.
When the age of 60 nears, it’s usually time to start considering when to hang up the work boots and trade them for a comfortable pair of loafers.
Hopefully, you started planning sooner than that — whether it be with a savings account, 401K investment, IRA, or Fixed Income Fund.
Retirement is meant to be an enjoyable part of life, where you can rest on the laurels you’ve built over the course of your life and reap the benefits of all your hard work.
But sometimes, retirement can be a scary moment.
Sometimes, we don’t know what to do with ourselves if we aren’t working.
It may be that our jobs gave us purpose, and our mental hardwiring can’t cope with the fact that there is so much free time available now.
Or, it could be the financial stress that comes with being a retiree.
No more regular job means no more steady paychecks, and our debts may not even be entirely paid off yet.
Not to mention, retirees have likely become accustomed to a certain lifestyle afforded by their income, which can take a jarring hit when retirement comes calling.
Retirement is meant to be relaxing, but there are still many challenges that recent retirees are facing today.
Here at Tactical Wealth, we want to lay out some of those challenges for you as well as provide a solution for some of these struggles.
In a June 2017 article, The Washington Post laid out five common financial struggles that people who are at or around retirement age are facing.
The article was based on a report from the Consumer Financial Protection Bureau, which broke down the amount of complaints received by consumers aged 62 or older since 2011.
Among those complaints and issues were:
- Debt: Older consumers and recent retirees may have turned to credit cards or other loans at some point in their lives, particularly in the event of an injury, illness, or other large and unexpected cost. Sometimes, they may even still be paying off their student loans or homes. Retirement can make it difficult for those consumers to deal with that debt, as they no longer have a steady paycheck coming in to aid with their monthly payments.
- Reverse mortgage complications: A reverse mortgage is a home loan often utilized by older consumers that allows homeowners to utilize their home’s equity and requires no monthly mortgage payments, but instead requires payment for only property taxes and homeowners’ insurance. In these cases, the loan payments are delayed until the homeowner dies or sells the house. However, the consumer report found that consumers were finding the income they received from a reverse mortgage was underwhelming and they were still struggling with their payments and facing foreclosure.
- Credit trouble: Older consumers and retirees have been found to be more susceptible to fall for things like credit card fraud, identity theft, or other scams. Seniors are less educated and comfortable with the steps necessary to dispute these scams, which can cause them to lose money and harm their credit. Other times, the report found, elderly consumers were confused with how their credit card interest worked and complained about being taken advantage of with unwanted add-on services when it came to subscriptions.
- Death of a spouse: One of the most challenging and unexpected costs that retirees face is the death of a spouse, which can leave the widow with the costs of a funeral service, even more debt, an inability to access certain savings assets or documents, and overwhelming mortgage payments.
For some, retirement may have come too soon.
Older citizens may yearn for a purpose, such as being a contributing part of the workforce, to avoid boredom and an overall loss of identity.
Working may provide the camaraderie and sense of belonging that seniors desire, and suddenly leaving that type of lifestyle can be a difficult adjustment.
Retirees with a newfound abundance of free time may realize that they have less friends and hobbies than they originally thought, or they may be hit with the reality that their former lifestyle, hobbies, or travel options are no longer affordable due to a loss of income.
So, how can retirees solve or mitigate the challenges associated with leaving the workforce for good?
Wouldn’t it be nice if there was a way to continue receiving a stable, consistent income to aid with the financial struggles and lifestyle maintenance?
Well, good news. There is.
Fixed Income Solutions
Tactical Wealth is proud to offer the Fixed Income Fund, the ultimate solution for peace of mind and a stable, consistent income.
The Fixed Income Fund was designed with the safety of our investors’ income and principal in mind.
We offer a one-of-a-kind, risk-averse investment by issuing and purchasing mortgage and trust deed loans in accordance with strict underwriting criteria in areas with historically stable markets.
The Fixed Income Fund offers a greater return than annuities and bonds for investors operating without the need for immediate liquidity. Also unlike an investment in bonds, the Fixed Income Fund is simple to understand with rates that never fluctuate.
The Fixed Income Fund has no investor fees, no management fees, and no transaction fees.
So if you’re looking for a consistent form of monthly income after retirement, contact Tactical Wealth and find out if the Fixed Income Fund may be right for you.