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4 Necessities of a Happy Retirement

By U.S. News & World Report

Many people worry about whether they will have enough money to live in retirement. It can be difficult to determine exactly how much you need to save to live the retirement you desire. But money is not the only thing you need to retire well. Here are four things more essential to retirement than having lots of money.

[See: 10 Retirement Lifestyles Worth Trying.]

Your health. You can have all the money in the world, but you won’t be able to enjoy it if you don’t have your health. Health is often more important than money when it comes to a successful retirement. Your health determines whether you are able to live independently in retirement.

As you plan for your retirement, try to think of ways to create better health as you have more time. Exercise and eating healthy will obviously help, but also think of ways to improve your mental health. Keeping your mind sharp also contributes to a better lifestyle, so keep doing those Sudoku and crossword puzzles.

Plans for your free time. As you plan for your retirement, keep in mind that you will have more time on your hands. While that may sound appealing, remember that more time and freedom is only good if you know how to use it wisely. Too much free time could lead to boredom and depression. It’s important to think about how you will keep busy and what you are going to do with your time. Keeping busy does not have to be expensive. If you take on a part-time job in retirement, you might even get paid to stay busy and be around other people. Some retirees end up busier than they were before they stopped working. Retirement is not necessarily about slowing down.

[Read: 5 Tips for People Who Will Retire in 2017.]

A social network. Next to being bored, another great retirement risk is loneliness. Part of having a successful retirement is to make sure you have people to share it with. Your working years created a social network for you. When you retire, you have to create your own social network.

Before you retire, start to think about who you might spend your time with. Perhaps you will live close to your family and spend more time with your kids or grandchildren. You could also move to a community of seniors or other retirees with similar interests. Maybe you plan to travel or maintain a second home in a vacation destination. Where you live and spend time can have a significant impact on your social network.

Your lifestyle. There’s no question that having money is important to a successful retirement. The more money you have, the more choices you have. But as important as money is, many retirees live happy and successful lives without millions of dollars.

[See: 10 Financial Perks of Getting Older.]

The key to a successful retirement is making sure your money matches your lifestyle. If you want to travel 365 days a year, stay in fancy hotels and eat in expensive restaurants, you might need millions of dollars to retire. But you can lead a busy and active retirement and maintain a great social network without a lot of money. Instead of eating out, consider potluck dinners with friends. You might walk to the local McDonald’s to meet your coffee buddies to laugh and tell stories for a few hours, proud of the fact that you only spent $1.65 on coffee because there are free refills for seniors. If you maintain your health and keep busy with things you enjoy and people to share them with, you won’t need as much money to retire well.

Jim Yih is the founder of Retire Happy .

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4 Necessities of a Happy Retirement 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
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