We like to think of our elderly population over 75 spending the majority of their time based either in Florida or visiting grandkids around the country. The truth is often more sobering with the U.S. Bureau of Labor Statistics Stating that 8.9 percent of Americans age 75-plus are either in full or part-time work or living on less than $10,000 worth of savings.
Furthermore, according to a CNBC study 75% of the American population do not have any help from a professional when it comes to managing their finances or have any kind of retirement planning. In this article we explore some of the most popular financial options open to the over 75 year old population.
The first Social Security Act was signed in 1935 by Franklin D. Roosevelt and has been put in place as a guaranteed source of retirement income for all Citizens of the USA.
Once you qualify for social security your benefits increase incrementally to keep the same pace as inflation ensuring a steady stream of income over time. Everyone is entitled to social security and this is a great retirement protection for anyone over the age of 75.
Equity release or reverse mortgage
The first reverse mortgage or equity release mortgage was created and first available to homeowners in America in 1961. According to HECMs by the year 2009, there have been over 115,000 home-equity conversion mortgages put in place. This involves selling off a piece or equity in your property e.g 20% and the lender recovers this equity when you die or go into long-term care.
It is an expensive form of finance, since you are giving away part of your property, but you can continue to live in the property and still benefit if it goes up in value.
Equity release or home reversion is available to anyone over 55 years of age (or sometimes 62, depending on the lender). It is sometimes considered a complicated undertaking or as a last resort. However, it is a perfectly viable way of raising disposable income when needed.
Selling off household items
Decluttering is big business these days and there are many quick and easy ways of clearing out your home of unwanted items. Selling old gadgets and analogue cameras is a great way to make some money and give any items that are gathering dust a new lease of life.
Children’s Books, DVD’s and even old textbooks can accrue significant amounts of value over time and eBay Amazon and Facebook Marketplace are great ways to list these products for a quick sale. Failing these digital methods a Jumble Sale is a great way to quickly free up space in your house and gain some income. Have a look in all your cupboards and the Garage, by staying organised and dedicated you can quickly unlock significant amounts of wealth that were lying dormant in your home.
Here are some more financial options that can help you to a more wealthy future for you and your family:
Staying in work
There are a wide number of roles that are available to over 75s helping people of a certain age stay active in their community while helping them to provide for themselves and loved ones. Bookeeping and Office Clerks hire a large amount of the population over 55 according to AARP.org. Working in Merchandising or as a customer service representative is a great way to stay active and work across a range of industries.
Investing in stocks
Americans are now living much longer than before and this has led to existing financial advice having to change and adapt. Many financial advisors are recommending that in order to make people’s money go further into old age people will need to put more of their money in stocks for that extra growth boost it can give to a portfolio.
Treasury Securities Investments are safe investments backed fully by the U.S. government. There are 4 types of securities investments and they allow you to guarantee you won’t lose the principal amount you invest. Funds like Vanguard offer return on investment at comparatively low risk as well as Corporate bonds and Dividend-paying stocks.
Peer to peer investing
Peer-to-peer lending and investing has exploded in popularity in recent years as a relatively stable way to earn a healthy return on investment. In its most basic terms a business or website works as a connector between individual investors who are looking to earn a strong return on their investment and people who are looking to borrow money with loans offering favourable terms.
Peer to Peer lending is advantageous because it connects people seamlessly to high market returns. It’s disadvantages come with a certain level of risk that borrowers will not honor their loans or that burgeoning lending platforms may not be able to manage the more high risk borrowers. Nevertheless Peer to peer lending is a hugely popular financial option taking America by storm.
Crypto Currency can be a great way for Americans over 75 to invest small amounts of money and see large returns on investment. Bitcoin and its less popular but equally lucrative alternative coins can, with the right investment yield huge rates of return and help safeguard peoples financial future with a comparatively small initial investment.
Cryptocurrency is still a relatively young concept and unregulated which means that you could put in more money than you withdraw. Entering with a heavily researched plan and solid timing of the market can make it a great financial option for anyone over 75.
Following just a few of these steps will ensure a strong financial base in which to grow old free from any worry and with enough wealth behind you to allow you to do whatever makes you happy.