Retirement should be the time to kick back and relax, yet a recent AARP report finds that 60% of older Americans worry their money won’t last.
Some of that stress may stem from common mistakes, like not tapping into built-up home equity my or simply not updating insurance coverage.
So if you’re on a fixed income and need to make every dollar count, check this list to see if you’re throwing away money without realizing it.
AmeriSave
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Longbridge
Explore home equity solutions
Ethos
Get an annuity with up to 10.5% a year 1. Not shopping around for insurance
If you’ve had the same home and auto insurance for years, you could be paying more than you need to. Rates can change at renewal, and your coverage needs may have shifted since you first signed up.
Comparing quotes once a year can help you make sure you’re still getting a good deal. Insurify lets you compare accurate, real-time quotes from 100+ top insurers side by side.
Plus you could save up to 15% by bundling home and auto insurance together. The process is 100% free, and there is zero obligation to switch unless you find a better rate.
Insurify
Get instant car insurance quotes and save today 2. Paying full price when you don't have to
Many businesses offer discounts to older customers, but you often need a membership card to get them. An AARP membership offers discounts and perks that can help you save on gas, travel, dental insurance and more.
You don’t have to be retired to join, and a membership is just $15 for your first year with automatic renewal, and $20 per year after that. Depending on how you use it, a single hotel stay or a new pair of glasses could cover the cost of your membership.
AARP
Discounts on travel, prescriptions, insurance and more 3. Ignoring the equity in your home
If you've owned your home for decades, it may be worth far more than what you owe on it. That equity doesn't have to sit untouched until you sell.
A home equity line of credit, or HELOC, lets you borrow against your home's value as you need it — for a new roof, a walk-in shower or a cushion for unexpected bills. Rates are typically lower than credit cards or personal loans, though your home serves as collateral and you'll make regular payments.
Amerisave offers competitive HELOC options that let you tap your equity without touching your primary mortgage rate. You can check your HELOC options online in minutes.
AmeriSave
Find low rates to access your home equity 4. Assuming you have to sell to tap your home's value
If monthly loan payments aren't in the budget, there's another option for homeowners 62 and older.
A reverse mortgage lets you convert part of your home equity into cash — as a lump sum, monthly payments or a line of credit — without a required monthly mortgage payment. You stay in your home and keep the title, as long as you live there, keep up with property taxes and insurance and maintain the home. The loan balance grows over time and is typically repaid when you permanently move out or pass away.
Longbridge Financial specializes in reverse mortgages and can walk you through whether one fits your situation. Federally insured reverse mortgages also require a session with a HUD-approved counselor, so you'll get an independent look before you commit.
Longbridge
Explore home equity solutions 5. Keeping all your retirement savings in one basket
When most of your nest egg is tied to the stock market, a rough year can hit hard, especially once you start drawing from it. That’s why some retirees look beyond stocks and bonds.
A gold IRA lets you invest in physical gold or gold-related assets within your retirement portfolio, pairing the tax advantages of an IRA with gold’s track record as a long-term store of value. For investors worried about inflation, it’s one way to diversify retirement savings.
Gold IRAs come with specific rules, so choosing the right dealer and custodian matters. Some companies also offer incentives. Goldco, for instance, can match up to 10% of qualified purchases in free silver.
Curious whether it’s right for you? Download a free gold and silver information guide.
Goldco
Diversify your retirement fund with a precious metals IRA 6. Not realizing your IRA can hold more than stocks
Most IRAs offered by banks and brokerages limit you to stocks, bonds and mutual funds. A self-directed IRA opens the door to alternative assets like real estate, private businesses, precious metals and private lending, with the same tax advantages.
It’s best suited to seasoned investors with $50,000 or more to invest. IRA Financial offers flat-fee accounts, access to retirement specialists and an in-house tax team to help keep your investments compliant with IRS rules.
Answer a few questions about the assets you’re interested in and how much you’d like to start with to prequalify for an account in just 90 seconds.
IRA Financial
Hold stocks and alternative assets in a self-directed IRA 7. Worrying about outliving your savings
It's one of the biggest retirement fears: what happens if the money runs out before you do?
One option you may want to consider is an income annuity through Ethos, which can help you convert your savings into predictable income.
You can lock in predictable income you can count on every month and customize your payout schedule to fit your budget.
If you’re considering an income annuity, book a free consultation with a licensed Ethos insurance agent to explore your options. No purchase is required.
Ethos
Get an annuity with up to 10.5% a year Not available for residents of New York.¹
8. Trying to figure it all out alone
HELOC or reverse mortgage? How much of your money — if any — belongs in gold or an annuity? When should you claim Social Security? These decisions are all connected, and getting them right can make a real difference over a long retirement.
A financial advisor can help you weigh the trade-offs. If you don’t have one yet, or if you’re reconsidering the one you’ve had for years, platforms like Advisor.com can help you find the right fit.
Just answer a few quick questions about what you need help with and you will be matched with a vetted financial advisor in 5 minutes. Then you can set up a free, no-obligation-to-hire call to see whether their approach and pricing model make sense for you.
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