retirees

Best Money Tips: 10 Countries Where Retirees Can Live Large and Save Big

Amy Lu — Mon, 02 Jul 2018 08:30:17 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found articles on the best countries to retire, how to score cheap flights this summer, and cheap and easy dessert recipes.

5 Signs You Need to Come Out of Retirement

Dan Rafter — Fri, 29 Jun 2018 09:00:11 +0000

You imagined retirement as a long-awaited reward for all those years of work. Maybe you pictured cruises around the globe, lazy days playing tennis, or plenty of time to spend with your grandchildren. But now that it's finally here, you're not so happy.

Maybe you're bored. Maybe you're restless. Maybe you're having trouble paying the bills. Whatever the issue, your retirement isn't the happy time you expected. The solution? You might need to come out of retirement, at least part-time.

Retirement doesn't work for everyone, at least not the first time around. But you might find happiness, a renewed sense of purpose, or financial relief by coming out of retirement and jumping back into the world of work again. Here are some signs that you need to end your retirement and start working again. (See also: 6 Great Retirement Jobs)

1. You're struggling to pay the bills

The most important reason to return to work is if you're struggling to pay your bills each month. Maybe you didn't save enough money during your first go-round in the working world. Maybe your expenses, such as health care, are higher than you expected. Whatever the reason, if your monthly income is barely enough to pay your bills, it might be time to find a job, even a part-time one, to help cover the costs.

If you're facing this challenge, know that you're not alone. According to a 2017 report from the Schwartz Center for Economic Policy Analysis, 35 percent of workers from the ages of 55 to 64 didn't have any retirement savings in an IRA or 401(k)-type plan. The median account balance of workers nearing retirement was just $15,000.

2. Your retirement savings are dwindling

Maybe you did save for retirement. But now that you're not working, you're finding that those retirement savings are disappearing much faster than you expected.

It could be that you've spent more than you expected during your after-work years, or it could be that you underestimated how much money you'd need to support yourself once you stopped working. After all, people are living longer today than ever. Many people are experiencing retirements that last the same number of years as their career.

Returning to work, even part-time, can help prevent you from depleting your savings too quickly. Earning even $1,000 a month might help stretch those savings out long enough to enjoy a happy and healthy retirement. (See also: 10 Signs You Aren't Saving Enough for Retirement)

3. Your health is suffering

Work might not always be fulfilling, but it does keep you moving. And that can be an underrated benefit.

It's easy to get lazy in retirement. You might spend far too much time sitting in front of the TV or reclining on the couch with a book. There's nothing wrong with a bit of relaxation, but what if you're sitting so much that your health is suffering?

The Mayo Clinic and other medical professionals have reported that sitting too much can result in serious health problems — everything from obesity and higher blood pressure, to elevated cholesterol levels. Getting back to work on a full- or part-time basis could keep you from sitting your days away. And that might provide a quick boost to your overall health. (See also: 5 Retirement Struggles Nobody Talks About — And How to Beat Them)

4. You're bored

Planning on whiling away your days on the golf course, fishing from the banks of your favorite lake, or spending more time with your grandchildren might sound good. And it might be good, too … for a while.

The truth is, days can be long when you're not busy at work. All that free time can start to feel more like a burden than a pleasure if you don't know how to fill the hours. You can only read so many books or binge-watch so much TV.

It's easy to get bored during retirement, especially now that retirement is lasting so much longer. Getting a new job could alleviate much of that boredom. It will take you out of the house and give you something to do. It doesn't have to be thrilling work, but it could be just enough to make those long, empty hours seem less intimidating.

5. You're lonely

Miss the office chitchat? Miss the after-work drinks on Fridays? Being retired can cut you out from the social interaction that work often provides. You might start to feel lonely once you leave the working world.

Even if your partner is still living and you have adult children and grandchildren, your social circle can shrink dramatically during retirement. That's because many of us rely heavily on work relationships for our social interactions. Rejoining the workforce, even on a limited basis, could boost your social life and ease the loneliness that too often comes with retired life. (See also: How to Find Your New Identity After Retirement)

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Embrace Having to Work in Retirement

Emily Guy Birken — Thu, 28 Jun 2018 08:00:15 +0000

We all know what retirement is supposed to look like: You get a nice farewell luncheon and a gold watch from your employer — and then you get busy golfing, traveling, spoiling the grandkids, and generally living it up in your golden years.

So if you find yourself with an underfunded nest egg and the realization that you have to continue working in retirement, you can be forgiven for wanting to throw an epic temper tantrum. Working in retirement is not what we were promised, and if that doesn’t warrant some flailing and crying, I don’t know what does.

But not being able to fully retire doesn’t have to put you in a permanent bad mood. Once you’ve stopped shaking your fist at the heavens, consider these ways to not only accept, but also embrace the reality of working in retirement.

1. You may be happier than retirees

Though it might seem like retirement is the key to happiness, psychological researchers have found that working is actually better for your subjective well-being. According to a 2014 study by Dr. Elizabeth Mokyr Horner in the Journal of Happiness Studies, retirees do experience a rush of well-being and life satisfaction in the first few months after they retire — but they feel a sharp decline of their levels of contentment within the first few years of retirement.

There are a couple of reasons for this decline in happiness. First, anything you spend years planning for is unlikely to live up to your expectations. It’s only natural for retirees to feel let down when they realize their new chapter in life isn’t exactly what they expected. In addition, when you end a career that has helped define who you are, it’s common to feel adrift once that career has ended. Finally, retirement can often lead to a shrinking social circle, since you no longer see co-workers on a daily basis. Lack of social contact can increase feelings of loneliness and depression, which can be a major problem among retirees.

Even if you are not happy about the fact that you have to work past retirement age, remember that working may actually be improving your happiness by helping to define you, giving you a broader social circle, and providing you with a reason to get up every morning. (See also: How to Find Your New Identity After Retirement)

2. You can make your workplace better

One of the benefits of working past traditional retirement age is the amount of knowledge and experience you bring to your job. Not only does that make you a valuable member of your workplace, but it provides you with an opportunity to help encourage and shape the culture there. By taking younger co-workers under your wing and making suggestions based on your depth of knowledge, you can potentially improve the company you work for. It’s tough to do this without the kind of clout your experience lends you.

3. You can put off taking Social Security

According to the Center for Retirement Research at Boston College, approximately 42 percent of men and 48 percent of women begin taking their Social Security benefits at age 62, the earliest you are eligible to receive them. But Social Security benefits are permanently reduced by up to 30 percent by taking them so far in advance of full retirement age.

If you are still working in retirement, you can put off taking your Social Security benefits, and thereby increase your monthly benefit by as much as 8 percent per year that you put off Social Security. In addition, you may also be increasing your Social Security monthly payment by continuing to work, since the Social Security Administration calculates your benefit based on your 35 highest earning years. If you are at the top of your lifetime salary while working past retirement age, these high earning years will replace lower earning years from your youth — and potentially increase your monthly payment. (See also: 6 Smart Ways to Boost Your Social Security Payout Before Retirement)

4. You are in a retirement investment sweet spot

Though working past retirement age may not be your idea of fun, it does give you an unparalleled opportunity to invest. First, since you are over the age of 50, you can take advantage of the catch-up provisions that allow you to contribute up to $24,500 to your 401(k) and up to $6,500 to your IRA, allowing you to reduce your tax burden while funding your retirement accounts.

In addition, since you are working longer, that means you have a longer investment timeline to play with. This can allow you to invest for growth in ways that a typical retiree could not, since she would be trying to protect principal. Since you anticipate working for a few more years, you get a few more years of the magic of compound interest working to build your wealth. (See also: 7 Reasons to Invest in Stocks Past Age 50)

5. You can keep using your employer’s health insurance

All Americans are eligible for Medicare as of age 65, but the program costs more than you might expect and covers less than you might think. Not only do you have to pay a premium of at least $134 per month for Medicare Part B, but you will be on the hook for 20 percent of the Medicare approved amount for health care after you have met the annual deductible of $183. In addition, Medicare does not cover prescription drugs, dental or vision care, foot care, hearing aids, or dentures.

Being able to stay on your employer’s health insurance could be a major benefit to working, since you are likely to have more comprehensive coverage under that insurance and it may be less expensive for you, as well. (See also: 4 Common Mistakes to Avoid When You Enroll in Medicare)

No need to curse the heavens

Working in retirement may not be what you planned, but it doesn’t have to feel like the end of the world. If you take the time to recognize how working in retirement can actually help your emotional, mental, financial, and physical well-being, you can embrace the reality of working when you’d expected to be golfing.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Ways to Preserve Your Net Worth in Retirement

Tim Lemke — Thu, 21 Jun 2018 08:01:16 +0000

We all know the key to a comfortable retirement is amassing enough wealth to last your entire post-work life. But if you truly want to ensure financial security, you should work to maintain or even build upon your net worth as you age. This requires an aggressive level of saving when you are young, and a lot of discipline along the way — but it can be done.

Let's examine some ways you cannot only make your retirement savings last, but also protect all of your net worth throughout your lifetime.

1. Budget and plan wisely

Retirees generally see their expenses decline as they age. The kids are out of the house, college is paid off, homes are owned free and clear. Don't get too cocky, though; you still need to ensure your expenses don't outpace your income. Continue working hard to live within your means. Keep budgets for most expenses, and develop savings plans for any big-ticket purchases. If you want to maintain your net worth, you can't allow your day-to-day cost of living to get out of hand.

2. Downsize

Do you need to live in such a large house? Do you really need two cars? You can reduce your day-to-day expenses and make your retirement funds last longer by simply scaling down your possessions. Considering selling some of your material items and converting them to cash for living expenses or for investing. Or, just donate them to charity and potentially get a tax break on donations.

Even though the footprint of your life may be getting smaller, your net worth can actually increase under these circumstances because you may be converting physical assets (house, car, etc.) to investments that can rise in value and generate new income. (See also: 7 Reasons You Need to Downsize)

3. Never spend your principal

In an ideal world, you are spending your retirement living off the gains and interest from your savings, not the savings itself. If you amass enough savings, that sum can by itself generate its own income in the form of interest, dividends, and capital gains, and it may be possible to live on that income alone. You need a lot of money saved to make this happen, but it's a wonderful feeling to know you are living comfortably without ever tapping into the bulk of your savings.

4. Avoid taking on new debt

You may be tempted in retirement to finally buy that beach house, that luxury car, or that set of his-and-hers personal watercraft. This is fine if these are things you saved for, but you can't let yourself go overboard. The last thing you want is to take on new debt that will add to your expenses at a time when your income is drastically reduced.

Borrowing can lead to interest payments, which can lead to more debt, and then you're seeing your nest egg and net worth drop faster than you ever intended. Avoid debt — especially new debt — and you will be in much better shape financially as you age. (See also: What to Do If You're Retiring With Debt)

5. File for Social Security as late as possible

Anyone can begin accepting Social Security benefits starting at age 62, but if you can wait until you're 67 (what the Social Security Administration considers full retirement age), you'll get 100 percent of your benefits. Accepting benefits before your full retirement age means you'll receive lower monthly payments, costing yourself thousands of dollars annually. (See also: 6 Smart Ways to Boost Your Social Security Payout Before Retirement)

6. Continue to invest

It may seem counterintuitive to consider investing when you're looking to protect the income you have. But there is a growing body of evidence to suggest that it's OK to invest in stocks even as you get older. Why? Because people are living longer and are more likely to outlast their savings.

Continuing to invest smartly in stocks can help you increase your savings and make it last longer. It's certainly wise to move most of your money into safer things like bonds and cash, but setting aside a certain portion for stocks could mean the difference between seeing your net worth shrink and watching it grow.

7. Pay as little tax as you can

Hopefully, you've used tax-advantaged accounts such as a 401(k) and Roth IRA to build your retirement savings. When you retire, you no longer have those vehicles at your disposal. But there are some things you can do to keep the government from taking too much. First, you can work to ensure that any income you have is taxed at as low a rate as possible. This means taking advantage of stock dividends and long-term capital gains, which are taxed at lower rates than normal income. It means purchasing tax-free municipal bonds. It means claiming as many deductions as you can on your taxes. Taxes are necessary to keep our society upright, but there's no reason to pay more than required.

8. Avoid bailing out relatives

This is not an argument against helping out your children or other loved ones with financial expenses. But it's important to be thoughtful about how you help and the impact it may have on your finances. Is the money you are giving to your adult child simply throwing good money after bad?

If you are helping to take care of the grandkids, are you being reimbursed for the child care expenses (food, clothes, etc.) you are taking on? Remember that in order to make your retirement funds last, you can't be giving away your savings carelessly. (See also: Are You Ruining Your Retirement by Spoiling Your Kids?)

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Ways to Travel More in Retirement

Nick Wharton — Mon, 27 Nov 2017 09:30:09 +0000

When it comes to ways retirees prefer to spend their time in retirement, travel often lands at the top of the list. The catch is, just because you’ve got a lot of time on your hands for travel doesn’t mean you have a lot of money. Still, it’s entirely possible to travel more in retirement with the right focus and with a few tips and tricks. (See also: 6 Ways Travel in Retirement Keeps You Young)

1. Take advantage of your flexibility

Without the constraints of work, one of the most valuable things that almost every retiree has in their arsenal is flexibility. Due to increased demand, flight and hotel prices go up at peak travel times, but often drop drastically outside of them. So when it comes to travel, being flexible about when you go can mean your travel budget will stretch a lot further than it would during peak times.

Costs in the offseason are far cheaper for everything from flights and accommodations, to entrance fees and attractions. You may save so much that you’re even able to put some money aside for your next trip.

Traveling during low season also means that even the most popular destinations are much quieter than usual — another plus if you’re not a fan of crowds. (See also: Why Timing Is Everything When Saving Money on Travel)

2. Use any discounts available

One of the great perks of being classed as a senior citizen is the wide range of travel discounts that you are now eligible for.

Organizations such as the AARP offer a host of deals for members on rental cars, hotels, cruises, and flights, though you have to pay the annual membership fee to access them. There are also lots of travel-related companies that offer their own discounts that are free to access. Best Western's 10 percent discount for folks 55 and over, One Travel’s senior travel deals, and Amtrak’s senior program offering a 15 percent discount, are just a few.

3. Try a house swap

There are lots of ways to get free or extremely cheap accommodation when you travel. But by the time you retire, you’re probably used to a certain amount of luxury and you don’t want to be couchsurfing or staying in hostels. If you have a permanent home that you’re willing to allow other people use, then house-swapping could be a brilliant option for you.

There are lots of house-swapping sites that make the process extremely simple and safe, and there are even a number specifically dedicated to seniors, such as HomeExchange50Plus.com. You just need to list your property with a description and photographs that show it off. Then you can explore the properties already listed by other members of the community before contacting them to arrange your perfect swap. Though you have to pay an annual fee to join these sites, it’s negligible compared the money you can save.

4. Go for longer and travel slower

Though this may sound counterintuitive, generally, the longer that you travel, the cheaper your average daily costs will become. Rather than trying to cram loads of activities and destinations into one vacation, plan to see just one place, and experience it more thoroughly. By staying put, you’ll spend less on transport to other destinations.

Because you’ve got a more leisurely schedule, when do you want to go somewhere nearby, you can take a slower city bus, for instance, rather than a pricey taxi. You can also negotiate discounts in many accommodations for longer stays. I’ve done this successfully many times and for stays over four weeks, I have managed to make savings of up to 50 percent (See Also: Savor Your Trip and Save Big With These 5 Slow Travel Tips)

5. Offer to house sit

Though house sitting is open to anyone, it’s a competitive market, so only the best profiles tend to get selected. Homeowners are looking primarily for trustworthy and considerate people to look after their homes while they're away, and being older generally helps to give you an air of reliability. Many people also like house sitters who have been homeowners, and will treat the home in the way they’d treat their own.

It’s similar to a house swap in that you get the use of a home for free, but you don’t need to have a house to reciprocate in return. Often you’ll be required to look after pets as part of the deal, but there is no cost other than the annual membership fee that sites like TrustedHousesitters charge. As with house swaps, you can save a significant amount of money through house sitting.

6. Downsize

Even though there are lots of ways to make travel more affordable, it still costs money. Money that not every retiree has lying around. But if you have a house that's bigger than you need, then you could be sitting on a golden nest egg.

Obviously the idea of downsizing would be to take advantage of any equity that you have in your existing property, which may be significant if you own the property outright. But even if you still have a mortgage, it may be possible to sell your home and buy a smaller one and still make a profit. You can then use this extra cash to fund your travels.

7. Prioritize travel

This is possibly the most important step to traveling more in retirement, and it’s a simple case of making it an absolute priority. One of the best ways to prioritize travel is to make a bucket list of all of the experiences you want to have and all of the places you want to visit. This will help to create a focus and provide you with a whole load of inspiration at the same time.

Make sure to check off items on the bucket list at regular intervals, say four trips a year depending on your flexibility. The key to doing this is planning, but it may also help to vocalize your plans to other people to help hold you accountable. If you tell your friends and family that you’re going to visit four specific places next year, it makes it much harder to find excuses to back out. (See also: Where to Do 9 Popular Bucket List Items on a Budget)

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

3 Ways Retirees Can Build Credit

Dan Rafter — Wed, 26 Apr 2017 20:00:10 +0000

You might think that once you reach retirement, your credit score is just one of those things you get to stop worrying about. While it's true that most retirees won't be applying for mortgages, it's not true that you don't need to maintain a decent credit score. What if you want to apply for a car loan? What about credit cards? You certainly won't get the lowest interest rates and best rewards programs possible without a good credit score to back you up.

A low credit score can also hurt you if you want to downsize to an apartment, or even move into a senior living facility. You might need a solid credit score to qualify.

Why it's hard for retirees to build credit

According to FICO, to have a credit score, you must have at least one credit account that is at least six months old. You must also have at least one account that has been updated by a creditor or lender during the last six months.

If you aren't paying a mortgage, paying off an auto loan, or using credit cards, you might not meet any of these requirements. This might lead to you becoming what FICO calls an "unscorable," a consumer who has no credit score at all.

Fortunately, there are ways for retirees to continue building credit. They require the same good financial habits you've been practicing before retirement.

Use the credit cards you have

You might prefer paying for items in cash. Instead, make small purchases throughout the month with your credit card. If you pay off your entire card balance each month, you'll continue to boost your credit score. (See also: How to Use Credit Cards to Improve Your Credit Score

Make sure that you don't charge more than you can pay off by the due date. If you do, you'll be stuck paying interest.

Never pay late. If you pay your credit card 30 days or more late, your card provider will report your payment as late to the national credit bureaus of TransUnion, Experian, and Equifax. This will cause your credit score to plummet. (See also: 5 Simple Ways to Never Make a Late Credit Card Payment)

Keep unused credit card accounts open

You might have a credit card that you never use, but don't close it. Having open credit card accounts helps your credit score, thanks to something called a credit utilization ratio.

This ratio measures your credit card balances against your total available credit limits, and it accounts for 30 percent of your score. Using too much of your available credit will cause your score to drop, while using a modest amount will help it rise. It's typically recommended that you not let debt tip this ratio beyond 30 percent. If you have a paid-off credit card that isn't getting much use, closing it will lower your overall available credit limit and your utilization ratio will then increase. (See also: How to Close a Credit Card Without Dinging Your Credit Score)

So, keep those unused cards tucked in your wallet. Having that extra credit that you're not using will provide a boost to your score.

Apply for a secured credit card

If you no longer have any credit cards, and you've become an unscorable, you can still build your credit. Your first step should be applying for a secured credit card.

You don't need a credit score to qualify for one of these cards. Their line of credit is based on the amount of money you deposit into an account with the financial institution issuing the card. (See also: How to Pick the Best Secured Credit Card)

If you deposit $1,000 into an account, you can then charge up to $1,000 on your secured credit card. Every time you use your secured card and pay off these charges on time, you'll get a boost to your credit score. Do this long enough, and you can build a score that's high enough to qualify for a traditional credit card.

Again, take the same precautions you'd take with a traditional credit card. Pay your bill on time each month, and never charge more than you can afford to pay in full by your due date.

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Reasons You Might Have a "Phased" Retirement

Dan Rafter — Tue, 04 Apr 2017 18:21:50 +0000

The prospect of working full-time one day and then heading into a complete retirement the next doesn't work for everyone. Some people don't want to work a full-time schedule as they get older, but they don't want to completely ditch the working life altogether.

Instead, they prefer what is known as a "phased" retirement. Rather than leaving the working world completely, they work on a part-time basis for several years, or even pursue freelance or small business opportunities, until they are ready to retire permanently. (See also: 6 Great Retirement Jobs)

Some will embark on a phased retirement because they want to stay active. Others will do so because they have little other choice; they need the money from part-time work to supplement their retirement income.

As you near your retirement age, a phased retirement might be in your future. Here are four reasons why you might choose this nontraditional retirement path.

Your current employer offers a version of phased retirement

A growing number of large employers are offering flexible retirement options for their workers. According to a 2015 report from WorldatWork, about 30 percent of large employers — those with 1,000 or more workers — offer flexible retirement plans, anything from allowing their employees to work on a part-time basis to letting them participate in job-sharing programs.

If you're fortunate enough to work for a company that offers such a program, entering a phased retirement will be relatively easy. Instead of working full-time for your company, you'll shift to part-time or job-sharing duties. This could be a simple way for you to slow your work schedule while remaining active in the working world and bringing in extra funds each month.

You need the money

The most common reason why older workers choose a phased retirement is because they need the money. Not everyone enters their retirement years flush with cash. Even with Social Security benefits, savings, and, for the fortunate few, pensions, many retirees can't afford to maintain the lifestyle they want. Working on a part-time basis, or starting their own consulting services, can help these seniors afford the retirement they want.

The key to deciding whether phased retirement is a smart move is to create a detailed budget that lists all of your retirement-year expenses. Depending on where you want to live and whether you want to boost your travel, the income from a phased retirement could make all the difference in how happy your retirement years might be. (See also: 9 Easy Ways Retirees Can Earn Extra Income)

You'd be bored without working

Then there is the specter of boredom. Relaxing days spent reading books, golfing, binge-watching TV, and visiting your grandchildren might sound great when you're commuting to work every day. But in reality, retirement can be long and boring. You might find that you don't have enough to fill the hours of your suddenly emptier days. You can only travel so much, after all.

A phased retirement might be the solution. You can still travel, visit your family, and spend relaxing afternoons catching up on your reading or pursuing favored hobbies. But you don't have to relax all the time. By working on a part-time basis, you'll retain some of the structure that many people need in their days.

And if alleviating boredom is the issue and not a lack of retirement funds, you're free to pursue only that work which interests you the most.

You've always wanted to be your own boss

Maybe you won't spend your phased retirement working for your former employer. Maybe you won't spend it working with any company. You might spend your phased retirement working for yourself.

Your retirement years might give you the opportunity to finally start that business you always dreamed of running. Maybe you've always loved animals and you want to start your own pet-sitting or dog-walking business. Maybe you're the inventive type who's created your own product. In your retirement years, you can devote more energy to building a business around this invention.

If the entrepreneurial spirit has always burned inside you, a phased retirement might provide the perfect opportunity to unleash it. Freed from the chore of driving into work each day, sitting through meetings, and filing reports, your retirement years can provide you the time you've always lacked to finally build your own business.

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Millennial Money Habits Every Retiree Should Learn

Brittany Lyte — Tue, 14 Mar 2017 11:00:11 +0000

When it comes to money matters, Millennials don't always get a good rap. These young adults are likely to view themselves in good financial health so long as they make the bills at the end of the month, let alone stow a little extra away for retirement. But don't mistake them as financial illiterates. In fact, there are some common ways Millennials handle their money that could benefit the older generations. (See also: 6 Ways Millennials Have Changed Money So Far)

1. Get Creative

As retirees age, their expenditures fall — but their income drops even faster. Perhaps retirees, who are unlikely to jump back into the traditional workforce due to a suddenly trickling cash flow, can benefit from some Millennial-style money tactics. Indeed, Millennials know how to get creative when it comes to their earnings. The old rules simply didn't apply to this generation of '80s and '90s babies that entered adulthood during the uncertainty of the financial recession. So, they made their own rules. They found their own innovative ways to survive. And now, as they continue to develop a distinctly entrepreneurial spirit, many Millennials are beginning to thrive.

More than any other generation, Millennials have embraced the sharing economy, in which a lawn mower, their car, or a spare bedroom can become a valuable source of revenue. The average Airbnb host earns more than $20,000 a year renting out a full, two-bedroom apartment or house in a major city, and this is exactly the kind of peripheral revenue stream that Millennials have become accustomed to seeking out for themselves.

When it comes to ride-sharing, 21% of Millennials have used user-powered programs like Lyft and Uber to save money while on vacation. Among other age groups, those numbers are much lower — 7% for Gen-Xers and 4% for Baby Boomers. For older retirees, the percentage is presumably even lower. Yet transportation is a significant expense for most retirees, and it's one that could potentially be lowered through the use of ride-sharing — not only during a vacation, but on a daily basis. Older households spend about $8,000 a year on transportation, ranging from a high of $9,321 for the 55 to 64 age group, to a low of $5,091 for the 75-and-older group, according to federal data.

2. Don't Buy Stuff, Spend on Experiences Instead

Millennials highly value experiences — concerts, yoga festivals, French lessons, surf lessons, palm readings, trips to Italy — and they are increasingly willing to fork over more and more money to get them. All told, 78% of Millennials would choose to spend money on a desirable experience or event over buying something desirable, and 55% of Millennials say they're spending more on events and live experiences than ever before, according to a 2015 study by Eventbrite. What's more, nearly eight in 10 Millennials say some of their best memories are from an event or live experience they attended or participated in, while 69% say attending live events and experiences make them more connected to other people, the community, and the world.

As it turns out, there's scientific evidence to support the idea that people of all ages who spend money on experiences rather than things have a greater shot at attaining happiness. More than stuff, experiential pursuits promote greater happiness, psychologists have found. Perhaps painting lessons, bowling clubs, and a little international travel might also hold the key to a happy retirement.

3. Save Like You Mean It

A recent survey by T. Rowe Price found that 67% of Millennials will save by any means necessary. One reason might be this: It's reassuring to have a stash of cash available for emergencies, and this fact very well may be a major motivator for young adults who came of age during the recession, when jobs were scarce and layoffs were commonplace.

Older generations could benefit from that same mentality. Saving by any means necessary, as if the financial future was completely uncertain, will help build up a money cushion should the worst actually happen.

4. Embrace Technology

Millennials are famously tech-savvy, and they're using their familiarity with mobile apps to track their investments, as well as their spending and saving habits, in real time. Tools like Mint and Digit make financial planning quick and easy, while Acorns helps Millennials automatically invest their spare change into a diversified and customizable portfolio. There are money-saving apps specific for grocery shopping, couponing, freelancing, and so much more. (See also: 7 Apps That Make Budgeting Fun — No Really!)

While retirees generally lag in technological proficiency, there's been great improvement in recent years. All told, 58% of people 65 and older go online, according to the Pew Research Center, which marks an impressive increase from 14% in 2000. The app and website Life Reimagined by AARP is one example of a highly-rated financial and social planning tool for retirees of all ages.

5. Volunteer in Exchange for Free Tickets

Americans 55 and older spend 5.3% of their budget on entertainment, which is slightly more than the entertainment spending of all Americans, according to U.S. Bureau of Labor Statistics. Perhaps older Americans could benefit from this tip straight out of the Millennial playbook: A little volunteer work can go a long way to get you access to concerts, festivals, and sporting events. Many theaters, stadiums, and festival grounds offer volunteers free tickets to events in exchange for some time spent charitably directing parking or ushering the aisles.

6. Talk It Out

Millennials are markedly open when it comes to discussing their financial woes, worries, and successes. Not only are they quick to seek expert advice, but they are also undeterred from engaging in frank financial talks with friends, spouses, parents, co-workers, and others. Retirees who come from a generation that largely believed that it's rude to talk about money in public could learn from the younger generation's fiscal transparency. Experts say that open conversations about finances can help save relationships, especially intimate ones. They can also lead to people to better address their financial concerns, which can help prevent financial crises from building up later on down the road.

This article is from Brittany Lyte of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Don't Let These Expenses Spoil Your Retirement Abroad

Claire Millard — Wed, 06 Jul 2016 09:00:11 +0000

The relatively low cost of living in countries like Mexico, Thailand, and Spain makes them popular destinations for retirement. Your fixed retirement income goes further here, affording the possibility of a little luxury, as well as adventure in your later years.

Standard of living, climate, and culture are all massive draws, but retiring abroad can also come with unexpected bills. Take, for example, medical costs, taxes, inheritance restrictions, and house buying fees which are completely different to home. While the everyday cost of living might be favorable, these "one off' costs can stack up.

Here are some specific (and perhaps unexpected) bills to watch out for.

Assets and Visas

In order to get a visa as a retiree, you will need to demonstrate that you have the income or assets to support your lifestyle. Because it is assumed you will not work (you're retired, after all), the visa type may prohibit you from taking on employment to supplement your income — making your pension or other assets absolutely crucial.

The amount required to get a visa varies from location to location. For example, to retire to Thailand you must prove you have a monthly income of around $2,000. Although this might seem low to those of us living in Western Europe or North America, this income is double that of the average Thai.

If retirement in Mexico floats your boat, you will need to prove you can afford it. A temporary visa which lasts for up to four years requires you to have an income of just over $1,500 a month, or just over $25,000 in the bank. A permanent visa, on the other hand, means you need over four times that in the bank, or a monthly income of over $2,500.

Exchange Rate Woes

Wherever you're headed, if you draw income or pension in one currency, and are planning on spending in another, then you need to understand and make allowances for exchange rate fluctuations. If not, you might find yourself with a hefty bill to pay.

For example, if you are planning on buying a house in your new retirement location, and will have a mortgage outstanding on it in a local currency, your payment might change significantly because of the exchange rate. Add in the potential fluctuations in mortgage payments due to interest rate changes, and you might struggle to predict exactly what your housing bills will look like on an ongoing basis.

If you own property in your home country, one option is to mortgage that property, and use the cash to buy outright in your adopted country. This means that the mortgage you will be paying is in the same currency that you draw income in, removing one source of worry.

The Cost of Good Health

For something that is truly priceless, keeping in great health can be pretty costly. Because a trip to the hospital can be relatively cheap in many popular retirement destinations, many expat retirees prefer to pay out of pocket for their health care as they need it.

Paying for health care is a personal decision, and depends largely on your ease of access to funds, and your attitude to risk. Be warned, though, that in some countries such as Thailand, hospitals have been known to turn away people who cannot prove their ability to pay, either with ready cash or valid insurance. Carry a credit card on you if you choose not to invest in an insurance policy here!

Home Sweet Home

Buying a new home is seldom stress free — and doing it abroad is likely to create some unexpected bills and charges. Make sure you're very clear on the costs involved.

Across Europe, for example, house buying comes with a whole range of fees which vary from country to country, and quickly mount up. Throw in the additional costs of having documents checked by a notary, or translated by an official translator, and buying somewhere to live can be especially pricey.

It is well worth keeping up with the local news in the country you move to, as your liabilities don't necessarily end once the purchase is complete. Homebuyers in Spain have been pursued for tax the authorities deemed payable on property bought up to a decade ago, because of the high numbers of overseas buyers taking advantage of the massive slump in prices. You might not be able to change unexpected bills like these, but at least you can be forewarned.

Part of what makes life overseas exciting is the opportunity to gather new experiences along the way. However, some of these differences can make life that little bit more challenging, too. Many of the costs associated with retiring abroad are unavoidable — but by being aware in advance, you can better manage the bills as they come in.

There's no substitute for your own research. If you're thinking of building a life abroad for your retirement years, then get your finances prepared, so you can enjoy peace of mind.

Are you planning to retire abroad? What do you think — does the lower cost of living outweigh the risk of financial surprises?

This article is from Claire Millard of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Downsides of a Reverse Mortgage

Qiana Chavaia — Fri, 15 Jan 2016 14:00:03 +0000

A Home Equity Conversion Reverse Mortgage (HECM), more commonly known as a reverse mortgage, is often used as a means of income for retirees. For those age 62 or older, these loans can provide guaranteed income during retirement (See also: 6 Ways to Guarantee Income in Retirement).

Though there are some similarities, reverse mortgages are not to be confused with home equity loans. Here, borrowers have to meet a minimum age restriction, hold the deed to their home, or have a relatively low balance that can be paid-off with a new loan. The home is then used as collateral for a new mortgage loan, up to $625,500 (or the lesser of the appraised value). But, instead of making monthly payments to the lender, the lender makes monthly payments to you, drawing on your home equity. It's a bit like purchasing an annuity using your home's value.

Sounds good, right? Not so fast. Reverse mortgages come with some significant drawbacks for certain borrowers. Consider these negatives before taking out a reverse mortgage.

Downsides of Reverse Mortgages

On the surface, reverse mortgages probably sound like a pretty decent idea since the bank pays you, right? Well, in a report published by the Consumer Financial Protection Bureau (CFPB), between December 2011 to December 2014, the agency processed approximately 1,200 consumer complaints arising from reverse mortgages. Borrowers reported "confusion and frustration over the terms" and "problems with loans servicing" as culprits causing them to face foreclosure.

1. Unable to Refinance and Misleading Terms

It appears many borrowers enter into loan agreements without fully understanding the terms of the loan. Among the complaints received by the CFPB from borrowers and their family members was not being able to renegotiate. Borrowers felt they were paying a high interest rate and were being overcharged. Others said they did not realize their adjustable interest rate would increase so quickly.

2. High Upfront Costs and Interest Rates

In comparison to the costs for obtaining a regular home loan, reverse mortgage costs are higher due to the way loans are structured. They also have higher interest charges. Interest rates on reverse mortgages tend to be 1.5% higher than regular home loans. Final costs include closing costs, lender fees, mortgage insurance premiums, and finance charges.

3. A Burden on Heirs

Home equity loans aren't a great choice if you intend on leaving your home as part of an inheritance. That's because these loans not only draw on the value of your home equity, but they're also due immediately upon your death. If your plan is to leave the property to your heirs, they will have the option of paying the loan in full or paying 95% of the balance (if they wish for it to remain in the family). If they're unable to settle the debt with their own funds, the asset must be sold in order to repay the lender. Once the debt is settled, any remaining proceeds will go to the estate.

But reverse mortgages are also due whenever you decide to sell the home — so if your retirement plans involve living anywhere other than your current residence, you'll have to fork over the balance of the loan as soon as you sell.

4. Facing Foreclosure When an Older Spouse Dies

When determining a borrower's eligibility for a reverse mortgage, age is crucial for two reasons:

The borrower must be 62 or older, and
The older a borrower is, the greater the loan amount he or she qualifies for.

For this reason, many couples agree to only include the name of the older spouse on closing documents, not aware that the surviving spouse could face foreclosure if the other dies. According to CFPB, consumers reported that loan originators falsely assured them they would be able to add the younger spouse to the loan at a future date. Make sure you read the fine print and clarify this concern before signing on the dotted line.

5. Difficulty Qualifying for Other Loan Types

Borrowers cannot refinance a reverse mortgage. Reverse mortgages may also have a negative impact on a borrower's ability to qualify for other types of loans. Over time, the accrued interest on reverse mortgages drain any remaining equity in your home. Worse, some homeowners complained that they were unaware of the terms of these types of loans. Before entering into an agreement, seek the counsel of a trusted third-party reverse mortgage professional. Hud.gov offers a directory of HECM counseling agencies, however turning to members of your community to find a referral is recommended.

Additionally, the CFPB report mentioned consumer concerns of encountering difficulty when attempting to repay loans. This included lenders failing to keep accurate records, and obstacles when attempting to prevent foreclosure — such as slow response times (critical during foreclosure), unresponsiveness, and receiving erroneous information or instructions.

While a reverse mortgage can be a good source of cash flow during retirement, it nonetheless requires careful consideration for the critical reasons listed above. If you're still interested in a reverse mortgage, do your homework, and understand the resources at your disposal. (For example, on March 2, 2015, The Federal Housing Authority implemented new policies to its HECM Financial Assessment to address consumer complaints.)

Have you considered a reverse mortgage? Why or why not?

This article is from Qiana Chavaia of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Cool Jobs for Retirees

Sarah Winfrey — Wed, 26 Aug 2015 21:00:28 +0000

While some of us will be lucky enough to have neither the need nor the desire to work through retirement, the truth is that a lot of retirees find themselves searching for employment.

Whether you're thinking about your own future, or helping an older relative think about theirs, retirees can live and work outside the box. Here are some fun ideas for working in retirement.

1. Work in a National Park

National parks need all sorts of seasonal help, from gift shop workers to cooks and managers. If you love to travel and adore seeing the best that the United States has to offer, consider taking one of these jobs. Not only do you get to work in some of the most spectacular places on earth, but you'd most likely end up living nearby, too. Depending on the park and the job, you may even have housing provided or subsidized within the park itself.

If this interests you, check out sites like Cool Works. They don't just list jobs for retirees, but they have a lot of interesting jobs in a lot of interesting places.

2. Housesit

So many retirees want to travel, but a lot of people find that the cost is just too much once they are actually living off their retirement income. If you're willing to be flexible and do a bit of work in addition to your travel, housesitting could be the job for you.

Housesitting isn't just limited to looking after the homes of people you know. Sites like Trusted Housesitters help connect people who want to do this work with those who want it done. Many housesitting gigs are unpaid, but retirees who do this work often value accommodation savings while traveling.

Some housesitting gigs come with extra work, like keeping up a small farm or caring for the home in particular ways. These are more likely to be paid, and will require you to have at least a minimum level of fitness to complete the tasks.

3. Consult

If you have an in-demand area of expertise, you might make a good consultant. Many observant people learn a lot about corporate structure, streamlining, finding good employees, and more during their working years. With some time and some focused effort, you can turn these observations into a thriving consulting business. Simply show people what you know, prove that it works and that it will help them, and you will be in great shape as a consultant.

4. Drive a Limo

Do you like to drive? If you're okay spending long hours in the car and have the physical capacity to help people with heavy luggage, you might have fun driving a limo in your retirement. You can choose to purchase your own vehicle, though many retirees find that it's easier to work for a company so that you don't have responsibility for the car and you don't have to get your own gigs.

5. Become a Tour Guide

Is there a place you love, or one you'd love to learn more about? Consider applying as a tour guide for that location. All sorts of places need tour guides: stadiums, factories, wineries, historical sites, and museums are only a few places to consider.

Guiding requires you to spend quite a bit of time on your feet, and it can also require a lot from your voice. As long as you're comfortable in those two areas, and don't mind interacting with a lot of people, this could be a fun job for you when you retire.

6. Teach Fitness

There is a huge push right now to get seniors to exercise more. If you are fit and like working out, why not lead a class of your peers at the local gym? Teach other seniors athletic skills, like how to lift weights safely, do yoga, or have fun getting aerobic exercise, and make some money at the same time. It will help if you are already familiar with the discipline you want to teach and have any necessary certifications, though you can always pick these up along the way, too.

Are you retired with a cool job? What do you do and how did you get into it?

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This article is from Sarah Winfrey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Earn Extra Income as a Courthouse Researcher

Linsey Knerl — Fri, 29 May 2015 13:00:10 +0000

Are you someone who has always been intrigued by a challenge or finding the needle in the haystack? A courthouse or title researcher does just that. This little-known job is popular among stay-at-home moms and retirees. Getting started takes time, but the business is steady.

What Is a Title or Courthouse Researcher?

A courthouse researcher is an independent contractor who researches public records to gather information for their client. You could be researching anything from genealogy, property records, titles, probate cases, tax liens, or even criminal records.

While a courthouse or title researcher is considered a work-at-home job, sometimes it might be necessary to actually go into the county courthouse to conduct the research, while other times you might be able to find the online version of the records you're looking for. If you have to do research in a courthouse, you are governed by their hours, which are usually between the hours of 9 a.m. and 5 p.m. and on weekdays only. The good thing is that you're able to be flexible with your own hours, especially when you're able to work from your home.

No specific degree or education is required to become a courthouse researcher, which can make it appealing to anyone who is looking for supplemental income. Some companies will help to train you, but you'll want to be familiar with a courthouse setting and where they keep their records. You can always ask for assistance within the courthouse, too.

Average Salary for Courthouse Researchers

The income you can expect for being a courthouse researcher varies greatly by the companies you work for and your speed. Speed and accuracy are incredibly important in this field, and the faster you're able to find and collect a record, the faster you're able to move onto the next one. As an entry level researcher, you might be making about $0.25–$0.30 a record. Once you're able to get comfortable in the position and have learned how to quickly locate records, you can expect earnings to increase. As of April 2015, the average annual salary of a courthouse researcher is $48,000.

Some jobs might require that you travel to neighboring county courthouses, which will add additional costs in the way of mileage and fuel fees. If you keep track of your mileage, it makes a good deduction when you file your taxes.

Where to Find Jobs

Keep in mind that some companies have a non-compete policy, so that you are only able to work for them. The most common companies that hire for this type of job are listed below. (Some may not be hiring in your area right now, but keep checking with them if you're unable to find something that works for you.)

Seasoned researchers have also found it useful to get to know the employees at the local courthouse, network, and leave a business card. According to one researcher with years of experience, it's not uncommon to get work in this field by checking the bulletin boards found at the entrances and common areas of the courthouse itself.

Does becoming a courthouse researcher interest you?

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This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Income Ideas for Seniors

Ashley Jacobs — Wed, 08 May 2013 10:00:35 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some fantastic articles on income ideas for seniors, frugal gifts for Mother's Day, and signs it's time to look for a new job.

Book review: Cash-Rich Retirement

Philip Brewer — Mon, 28 Apr 2008 13:08:05 +0000

Cash-Rich Retirement: Use the Investing Techniques of the Mega-Wealthy to Secure Your Retirement Future by Jim Schlagheck.

Do you need a kick in the pants to get you saving for retirement? Do you need someone to wave their arms and run around screaming that your whole future is at risk, in order to motivate you to put some serious money aside and take the time to learn how your 401(k) works? If so, this is the book for you.

It's fascinating to read this book in conjunction with Work Less, Live More, which I checked out of the library the same day.

Where that book goes way beyond the classic notion of retirement at age 65, suggesting that not just retirement, but early retirement, is readily available to almost anyone--if they're willing to live frugally and maybe keep on doing a bit of work on the side--this book is the complete opposite.

Schlagheck scarcely talks about early retirement, and it doesn't even seem to imagine that anyone might do any work to earn money after they retire. It's all about straight-up retirement: You work to retirement age, and then you quit. And, it warns, if that's your plan, you may be in for an unpleasant surprise. Not only is your retirement in "grave danger," the whole system of retirement is on the verge of being a failed experiment.

Schlagheck sees two sources of danger.

The first is the "coming demographic storm" of baby boomers all getting set to retire at once. Not only are they all going to want to get their social security payments at once, they're also going to be taking their pensions (from old-line businesses and from state and local governments) at once. Plus, they're all going to stop accumulating investments, and switch to selling them instead. With everyone trying to get their money at once, Schlagheck sees a real danger that they won't all succeed.

The second is a set of foolish ideas about investing. You cannot, he says, safely rely on capital gains for your investment returns; reliable long-term returns are largely going to come from income: dividends, interest, and rents. In addition, you can't get adequate diversification simply by dividing your investments among American companies of different sizes (a generous helping of S&P 500 seasoned with some mid-cap and small-cap funds). You need to diversify both internationally and among asset classes (stocks, bonds, REITs, etc.).

I actually agree with most of what Schlagheck says, especially about his focus on income in your investment portfolio and on the kinds of investments you ought to be focusing on. In addition to the excellent chapters on investing, he's got a good chapter on health insurance, some interesting thoughts on long-term care insurance, and lots of good detail about complicated subjects like annuities (that aren't so well covered other places).

Where I have a problem is in the way he's trying to work the reader up into a tizzy. The book could not have been printed before the digital age, because in the days of metal type the printer would have used up his entire supply of exclamation points before getting halfway through the manuscript. Every page is splashed with italics warning you of a threat or urging you to action. The repeated exhortations to "save, save, save" become wearisome, and the drumbeat warning that your retirement is in danger don't become more compelling with repetition.

Still, if you or someone you know is just blithely assuming that retirement will take care of itself, a wake-up call like this may be just what you (or they) need. The information is right on, even if I got an unusually vigorous workout for my eye-rolling muscles as I plowed through the cautions, dangers, perils, warnings, and urgent urgings.

For the right person, though Cash-Rich Retirement by Jim Schlagheck is a fine book. Excellent content. Just a little strident for my tastes.

This article is from Philip Brewer of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Book review: Work Less, Live More

Philip Brewer — Tue, 22 Apr 2008 13:12:46 +0000

Work Less, Live More: The Way to Semi-Retirement by Bob Clyatt.

Early retirement is a topic I've always been interested in. The particular version of it that this book deals with--living well on less money, as a means to getting by without having to work at a regular job--is not only interesting, it's the life I'm living. Allowing for the fact that it's aimed right at my own personal sweet spot, I liked it even better than I expected. It reads like the author started following me around a year ago, figured out exactly what questions I needed answered, then carefully and thoughtfully wrote a book to answer them.

The book is aimed at people interested in "semi-retirement," by which he means people who want to (or have to) work less, but who aren't in a position to (or don't care to) stop working altogether. There are an increasing number of people in that situation:

people who are burned out on their old careers
people whose skills no longer match the job market
people who want to spend more time with their families
people who want to focus on interests (art, music, writing) that don't pay enough to support them

About half the book is about money, because for most people, money is the limiting factor in making the sort of lifestyle choices the book is talking about.

There's a chapter on frugality (which is necessary before semi-retirement, to free up cash for saving and investing, and then necessary after semi-retirement, to make that modest portfolio last). It's got some good information on how to include less-than-annual expenses (like major home repairs, replacing a car, and so on) in your planning.

There's a chapter on investing, with a focus on asset allocation and setting up a portfolio that will earn a good return without too much volatility. It starts with basics, like low-cost index funds, then expands on it just a bit (adding investments whose values aren't strongly correlated with those, to help stabilize your portfolio's value).

There's a really good chapter on figuring out how much of your investment portfolio you can safely spend each year. It covers a lot of the same information I cover in my article on How much you can spend in retirement, and ends up in about the same place, but he's got an interesting twist that I think is really valuable.

Others who have looked at this have concluded that you can probably spend about 4% of your capital the first year, and then increase the amount you spend each year by enough to keep you even with inflation--and expect that the return on your investments will add up to enough to maintain your portfolio indefinitely.

There are several negatives with this strategy. If you have a bit of good luck in the market--especially good luck early--your portfolio might grow quite substantially. In that case, just growing your spending to match inflation might seem a little meager. On the other hand, if you have some serious bad luck in the market, continuing to take the inflation-adjusted draw could burn through your capital very quickly.

The intuitive solution is to go ahead and step up your withdrawals in good years, while cutting back slightly in bad years. (Cutting back drastically might be even better, but most semi-retirees are already living frugally enough that it might not be practical to cut back to just 4% of a portfolio that was sharply reduced after a severe downturn in the market.)

What Clyatt has done is put some numbers to that intuitive solution. He proposes that you feel free to spend 4% of your portfolio each year:

In a good year, you get the full benefit of your portfolio growth.
In a so-so year your 4% might just barely (or not quite) match inflation, but a semi-retiree can probably deal with that.
In a poor year, your 4% might shrink so much as to produce an actual decline in the amount of money you can spend. In that case, Clyatt says, you can go ahead and spend 95% of what you spent last year, putting a floor under the amount your available cash can shrink from one year to the next.

And here's where Clyatt provides some real value. That 95% value isn't arbitrary. He tested it. If you'd started following this strategy for any 40-year period since 1927, you'd not only not have run out of money, your portfolio would have at least maintained its value. Over 10, 20, and 30 year periods you'd sometimes see a decline in value, but no instance when the portfolio ran dry.

For me, just that analysis is worth the price of the book. The stuff on taxes is just a bonus.

The rest of the book is about other aspects of being a semi-retiree. There's stuff on finding the right work--meaningful, remunerative, and not as stressful as the full-time work you're semi-retiring from. There's stuff on dealing with no longer being part of the work-a-day world. There's stuff for couples, if one or both of you is suddenly spending a lot more time at home.

It's worth comparing this book to Timothy Ferriss's The 4-Hour Workweek. The "work less" theme runs through both of them, but Ferriss focuses on making a bit of money from something other than a regular job, and then on convincing your regular employer to let you turn your regular job into one where you don't need to show up all day every day. Clyatt doesn't have anything about that second part (dealing with your boss), and a different focus on the first (work that's meaningful and low-stress, rather than maximum return for minimum hours).

I've also previously reviewed Retire on Less Than You Think. It's a good book, but it's focus is largely on how a retiree can live cheaply without much loss in standard of living--and I was a little underwhelmed by the insight that you can retire on less money through the magic of spending less. (If you--or perhaps your spouse--needs to internalize that message, it's a great book.)

If you've already got that part down, then Work Less, Live More may be a better choice for you. It doesn't skimp on the frugal living part, but it assumes you can figure a lot of that stuff out for yourself. (It does have a good section on health insurance for early retirees.) If you've ready to deal with the details of being a semi-retiree--or planning to be one--this is a great book.

This article is from Philip Brewer of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

retirees

Best Money Tips: 10 Countries Where Retirees Can Live Large and Save Big

Top 5 Articles

Other Essential Reading

5 Signs You Need to Come Out of Retirement

1. You're struggling to pay the bills

2. Your retirement savings are dwindling

3. Your health is suffering

4. You're bored

5. You're lonely

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5 Ways to Embrace Having to Work in Retirement

1. You may be happier than retirees

2. You can make your workplace better

3. You can put off taking Social Security

4. You are in a retirement investment sweet spot

5. You can keep using your employer’s health insurance

No need to curse the heavens

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8 Ways to Preserve Your Net Worth in Retirement

1. Budget and plan wisely

2. Downsize

3. Never spend your principal

4. Avoid taking on new debt

5. File for Social Security as late as possible

6. Continue to invest

7. Pay as little tax as you can

8. Avoid bailing out relatives

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7 Ways to Travel More in Retirement

1. Take advantage of your flexibility

2. Use any discounts available

3. Try a house swap

4. Go for longer and travel slower

5. Offer to house sit

6. Downsize

7. Prioritize travel

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3 Ways Retirees Can Build Credit

Why it's hard for retirees to build credit

Use the credit cards you have

Keep unused credit card accounts open

Apply for a secured credit card

4 Reasons You Might Have a "Phased" Retirement

Your current employer offers a version of phased retirement

You need the money

You'd be bored without working

You've always wanted to be your own boss

6 Millennial Money Habits Every Retiree Should Learn

1. Get Creative

2. Don't Buy Stuff, Spend on Experiences Instead

3. Save Like You Mean It

4. Embrace Technology

5. Volunteer in Exchange for Free Tickets

6. Talk It Out

Don't Let These Expenses Spoil Your Retirement Abroad

Assets and Visas

Exchange Rate Woes

The Cost of Good Health

Home Sweet Home

5 Downsides of a Reverse Mortgage

Downsides of Reverse Mortgages

1. Unable to Refinance and Misleading Terms

2. High Upfront Costs and Interest Rates

3. A Burden on Heirs

4. Facing Foreclosure When an Older Spouse Dies

5. Difficulty Qualifying for Other Loan Types

6 Cool Jobs for Retirees

1. Work in a National Park

2. Housesit

3. Consult

4. Drive a Limo

5. Become a Tour Guide

6. Teach Fitness

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How to Earn Extra Income as a Courthouse Researcher

What Is a Title or Courthouse Researcher?

Average Salary for Courthouse Researchers

Where to Find Jobs

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