2026-07-06 19:34:35 Retirement Enhancing Moves That Are Difficult to Pull Off – NEW WTOP Skip to main content

Retirement Enhancing Moves That Are Difficult to Pull Off

By U.S. News & World Report

Most of us know what we need to do to be better prepared for retirement. But that doesn’t necessarily mean that it will be easy or even possible to implement our good intentions. Wise retirement moves are hard to make, even when you know they will improve your nest egg. Here are a few things that will boost your retirement finances that might be difficult to accomplish.

Shift to more conservative investments as you approach retirement. The role of bonds in a portfolio is volatility dampening rather than returns. I know that less volatility will make me more comfortable as I get closer to retirement, but it’s hard to overcome the fear of adding bonds to my portfolio with interest rates so low. I currently have about 20 percent of my investments allocated to bonds and will need to increase this substantially by retirement. Shifting more of my portfolio to bonds will help me to avoid losing sleep in retirement because of stock market volatility and decrease the risk of my investment portfolio significantly dropping in value. I intend to move to more high quality bonds and keep rebalancing.

Delay Social Security. The higher you can get your guaranteed retirement income sources including Social Security, the less anxiety you will feel during your golden years. That’s why one of the best ways to increase portfolio longevity is to delay collecting Social Security. By waiting, your monthly payments will increase and the bigger amount you eventually collect will adjust with inflation for the rest of your life. Since I probably won’t need Social Security checks to make ends meet, waiting drastically reduces the chances that I’ll run out of money if I end up living a long life. It can be incredibly difficult to resist the checks until you are older, but I will do my best to wait because it’s logically one of the best retirement decisions I’ll make.

Consider single premium immediate annuities. Another way to create dependable income is to hand over a lump sum to an insurance company in exchange for guaranteed income. Whether you will win out mathematically depends on how long you live, but the guaranteed income also brings peace of mind that far exceeds what a stock and bond portfolio can provide. My biggest concern is whether the insurance company will go bankrupt, so I will spread out the risks by buying these immediate annuities with a few different companies.

Take advantage of income opportunities. Another way to ease your anxiety about retirement is to reduce your annual withdrawal rate by increasing your income. You might be able to take on a part-time job or temporary assignment to make extra income. You may also be able to make money without a formal commitment to a job by selling your stuff, better managing your assets and investments and making use of a cash back credit card and sign up bonuses for new financial accounts. There are plenty of ways to make more money if you have the time to look.

Try to lower your spending by seeking out the best deal. You may be able to improve your retirement cash flow by working on the spending side of the equation in retirement. When I’m no longer tied to a job and raising two young kids, I can travel more during the off-season, spend more time analyzing deals and waste less money on convenience. While not everyone wants to spend their time looking for ways to save money, cutting your expenses will deliver the ultimate prize: freedom. If you spend less each month you can lower your retirement withdrawal rate, which will help your nest egg to last longer. The peace of mind and freedom you gain by having lower expenses can be worth the effort.

David Ning is the founder of MoneyNing.com .

More from U.S. News

10 Images That Will Motivate You to Save for Retirement

10 Retirement Lifestyles Worth Trying

10 Ways Retirement Will Surprise You

Retirement Enhancing Moves That Are Difficult to Pull Off originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

What DC-area photographers who usually cover concerts, theater and events are doing for you now

Three popular restaurant chains post layoff notices for nearly 3,000 in Maryland

Weather service confirms that tornado hit Caroline County, Md.