Need a Lump Sum of Cash in Retirement? Try These Methods

When you reach retirement, you’re likely to have some steady income to live on. It helps to pay your bills and any other daily expenses, whether it’s from a pension or investments. However, sometimes you want or need to have a lump sum of cash. Instead of having your money steadily trickling in, you can have a larger amount of cash that you can spend as and when you like. You won’t necessarily want to blow it all right away. But it will help you to pay for things such as home improvements, traveling or anything else. Life is too short to waste it saving, so try these methods to boost the cash you have in the bank.

Downsize Your Home

When you retire, you might still be living in the home you’re children grew up in. Even if you’re not, you’re likely to have a few spare bedrooms for visitors. While it’s nice to have space for anyone who wants to stay, you might decide the house is too big for you now. It’s more expensive to pay the bills than it would be in a smaller home. Now that the mortgage is paid off, why not consider downsizing to a smaller home? You can keep some of the money aside and buy a cheaper house. There might not be room for guests, but you could always help them out with the cost of a hotel.

Sell Your Annuities

It’s great to have your annuities to live on. But not everyone wants their money to come through in measured amounts. The consistent payments you receive aren’t always convenient when you have certain expenses to meet. Having the money upfront could be a much a better idea in many situations. As you can learn on, there are several ways of selling your annuities. You can get a partial payment so you can still have regular payments in the future. You can also sell all your payments, or sell them for lump sums. The different options have varying benefits that will suit different people.

Sell Other Assets and Investments

You might have other assets that you’re willing to sell too. Some of your investments for retirement or other personal possessions could help to give you a lump sum you can spend now. Think about how much money you need and whether selling something makes sense for the future. For example, if you were to sell your car, it would give you money now, but you would then have to spend money on getting around another way. You need to think about the long-term effects of your decision.

Take Out a Loan

You could also take out a loan so that you have the cash you need, and can then pay it back as you can afford it. If you have assets you can borrow against, you might find it easier to get a loan. Taking out a loan will put you in debt, but it does make large payments easier to manage.

Having some savings or a lump sum of cash to spend is often essential. If you need to ensure you have money in the bank, try one of these methods.

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