• Question
  • How can I live on a short income??

    Asked by a 80 year old man from Vallejo, CA on 2/22/2013

    How can I live on a short income??

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  • Categories: Retirement Planning, Budgeting

Answers

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  • It looks you are concerned about having an income shortfall. Here are some ways people use to get through similar situations:

    1. Examine your fixed expenses and discretionary monthly spending more closely. Begin by listing your current expenses monthly or annually. Then try to find unnecessary expenses or those you can reduce or postpone.

    2. Find a part-time job, something you may enjoy doing that could supplement income..

    3. Downsize your house. Sometimes, people don’t need a huge house, and moving to a smaller house can give their finances a big boost and help them lower their expenses such as property tax and maintenance fees. You can learn more about benefits of downsizing at: http://www.newretirement.com/Services/Relocation_Benefits.aspx

    4. Use a reverse mortgage to supplement income. If your heirs don’t need your house, it can give you access to a line of credit you can draw down if you need liquidity. There are a few requirements to meet to be eligible. First, you have to be 62 or older. Second, you have to occupy the property as your principal residence. Third, own the property outright or paid-down a considerable amount. You can learn more about reverse mortgages at: http://www.newretirement.com/Services/HECM_Saver_Reverse_Mortgage.aspx?nr_placement=Answers&nr_adgroup=11637

    5. Withdraw money from cash-value life insurance such as whole life insurance and universal life insurance. However, keep in mind that you could face unwanted consequences, such as the reduction of your death benefit, possible taxes or the unintended termination of the life insurance itself. Inquire about extra benefits for low-income earners such as Supplemental Security Income, Utility Assistance, medical assistance and veterans benefits Programs. You can learn more about benefits for low-income people at: http://www.newretirement.com/Services/Low_Income_Benefits.aspx

    Review your specific situation with a qualified advisor to help determine which options are best for you.
    This answer is provided as general information only and provided by Master’s students pursuing a degree in Personal Financial Planning at Texas Tech University. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or Certified Financial PlannerTM as to your unique financial situation.

  • Login to rate this answer:   Answered on 5/3/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.