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Here Are Four Surprising Ways to Earn Money After Retirement

Are you strapped for cash post your retirement? Even, if you retire from work, the bills do not stop coming. Unfortunately, the salary stops getting credited to your account. Of course, retirees do get a Social Security benefit, but for any random person, it can replace just 40% of income.

However, experts say that individuals after retirement should think of adding seventy percent to eighty percent. If you are on the verge of retirement, here are some surprising ways to rack up your retirement earnings.

 HSA, Serving Up as A Retirement Account

HSA or a health savings account makes it easy for you to pay for medical bills especially when your health plan is high-deductible. However, if you are healthy and need to accumulate some extra amount of cash in the account, a Health Savings Account can come to your aid as a good retirement account.

When you are below the age of sixty-five, you have to pay a hefty price for some expenses (non-health). You may have to pay a penalty (20%) along with your taxes. But when you reach 65, you can start taking HSA-based distributions without having to cough up a penalty. All you would have to pay is taxes when you withdraw the money.

A Special Type of Mortgage

If you are the outright owner of your home or boast of a good amount of equity, you can always opt for a special type of mortgage or reverse mortgage. It’s a type of loan, where the lender pays you, instead of the lender receiving the money from you. However, in order to qualify for the mortgage, you need to reach a certain age, 62 in this case. When you leave your main home or die, your estate or you will have to pay the loan off with interest.

In such an instance you can sell off the home to pay off the loan. This kind of mortgage is not for everyone since they are complex and you have to pay certain fees to avail the same. Your balance will continue to go up every month as interest accumulates. However, if you are a homeowner and you need some money, you can always consider a reverse mortgage.

Reinvest Dividends

While you are trying to build up your retirement fund, you may have to reinvest the dividends and interest you earn on certain investment options such as CDs or bonds.

However, once you retire you may use it for income, instead of reinvesting. If you are using the same for income purposes, use the same for dividend funds in place of using a person’s dividend-based taxes.

During hard times the company needs to cut the dividend. This is because when you invest in an exchange-traded fund and you are ready to invest your money in different stocks, you may be shielded more from getting a dividend cut.

Social Security of Your Spouse’s or Ex’s

If you’re in a marital relationship or divorced, you may have to extract more money out of Social Security as you get to make the most of spousal benefits instead of getting from your retirement benefit. If you as a spouse want benefits on a present wife’s or husband’s work record, you may need to get benefits out of it already. If you are collecting from your ex-wife’s record, before you need to take benefits out of it, you may need to reach for the eligibility criterion.

To seek benefits from the same, your marriage needs to last for a decade, and your divorce duration must last for at least 2 years. You’ll only get extra moolah if your former spouse drew a higher salary than you. When you seek benefits, Social Security will calculate your retirement and spousal benefit and offer you which is of higher value. If the history of your work is nothing to write home about your spousal benefit can provide a sizeable income.

As you see you don’t have to work for more than 40 or more hours a week if you want to earn a little extra retirement income. Find out a few job options which can work great for you. Otherwise, you can always browse through these options and find out which one is the right option for you to lead a stress-free finances post-retirement.

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