The current global financial crises has been particularly tough
on those who are already retired and living on their hard-earned savings
and investments. In some western countries investments in shares have
lost 20% or more of their value in the last few years - and returns look
set to stay low for a while to come.
If you are living on an income stream based on financial investments you will have seen a big drop in your income. The question is what can someone who doesn't want to go back to work do about it?
In essence you have two options: live on less or sell some assets to improve your cash flow.
Some retirees may be tempted to sell the house - but that has issues as well in many parts of the world, particularly America and the UK, where property markets are still very depressed. Though it is worth bearing in mind if you have owned the property for a significant period of time and don't have a mortgage against it, and you buy soon after selling - you will have also bought at a depressed price. The price difference is what you need to focus on rather than the actual sale price of your existing property.
Others will not want to take the drastic step of selling a much-loved home. Instead they will look to selling other items and financial investments they may have. Selling second and third cars, boats and art works can be highly profitable. In fact there is currently a mini-boom in selling gold and gold jewelery as gold is hitting high prices as once again investors see it as a safe-haven against troubled currency and stock markets.
Another item worth considering selling are insurance policies. These are often taken out and forgotten about -the original idea being that the payout will help pay funeral expenses and leave something for your heirs. The reality is that you may need that money yourself, and the good news is that there is a strong secondary marketing in buying and selling life insurance policies - particularly for those who are older and in deteriorating health.
Another option is to check if you have any of those now out of favour, endowment policies. Again, like life insurance policies, endowments were designed to provide a future lump sum - but you may be able to get a sizable amount for them now rather than waiting for their due date.
If you are living on an income stream based on financial investments you will have seen a big drop in your income. The question is what can someone who doesn't want to go back to work do about it?
In essence you have two options: live on less or sell some assets to improve your cash flow.
Some retirees may be tempted to sell the house - but that has issues as well in many parts of the world, particularly America and the UK, where property markets are still very depressed. Though it is worth bearing in mind if you have owned the property for a significant period of time and don't have a mortgage against it, and you buy soon after selling - you will have also bought at a depressed price. The price difference is what you need to focus on rather than the actual sale price of your existing property.
Others will not want to take the drastic step of selling a much-loved home. Instead they will look to selling other items and financial investments they may have. Selling second and third cars, boats and art works can be highly profitable. In fact there is currently a mini-boom in selling gold and gold jewelery as gold is hitting high prices as once again investors see it as a safe-haven against troubled currency and stock markets.
Another item worth considering selling are insurance policies. These are often taken out and forgotten about -the original idea being that the payout will help pay funeral expenses and leave something for your heirs. The reality is that you may need that money yourself, and the good news is that there is a strong secondary marketing in buying and selling life insurance policies - particularly for those who are older and in deteriorating health.
Another option is to check if you have any of those now out of favour, endowment policies. Again, like life insurance policies, endowments were designed to provide a future lump sum - but you may be able to get a sizable amount for them now rather than waiting for their due date.
Although its no fun having a financial crises interfere with your
well-earned retirement there is no reason to panic. Check out what
options you have for selling endowment policy or for selling your life insurance policy.
Article Source:
http://EzineArticles.com/?expert=Robert_H._Jones
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