Best Possible Retirement: 4 Things You Can Control

By Pam Krueger | Updated June 9, 2017 6:00 AM EDT

[OPINION: The views expressed by Investopedia columnists are those of the author and
do not necessarily reflect the views of the website.]
Retirement is supposed to be an exciting new chapter in our lives. Wed like to think we can live
well within our means once we stop working. But when we hear that most Americans will never
be able to retire, our alarm bells go off even when the rational side of our brain tells us to stay
calm, that things will work out.

It doesn't help to realize how much of the situation is completely out of our hands: ordinary
individuals cant change the direction of interest rates or stock prices. All the same, we have
more control over how our retirement will play out than many people think, even as it's about to
start. Four decisions you make can have a huge impact on how comfortable you will be in this
next chapter of your life. And they have nothing to do with the stock market or the economy.

Start by Taking Stock

If you really want to know how much you weigh, at some point, you have to step on a scale. It's
even more important to know the truth about how much your assets weigh and how heavy
your debt load is. How much do you have in your savings? How much debt are you carrying?

Americans may be finding it a challenge to learn Donald Trumps real net worth, but for most of
us, finding our own real net worth is far simpler. In the best case, you can subtract your total
debts from your total assets, with a substantial sum left over. Negative numbers are not what
we're seeking.

Timing for Retirement Success

Knowing where you stand financially, then using those data as a starting point, will help you
figure out when to trigger each of these four events. Timing is everything.

1. When to quit working Work out the math, or consult a fiduciary financial advisor who
specializes in retirement income planning, to determine when or if you can stop working
(see Retirement Doesn't Mean You Have to Stop Working). Work doesnt have to be a
grind if you do something you truly enjoy nor does it always need to be full time. The
longer you can bring in outside income, the longer you can leave your own savings
alone to grow. Deciding to work an extra two or three years can add as much as 30% to
your total income once you do stop working.
Retirement Doesn't Mean You Have to Stop Working
By Donna Nebenzahl | Updated November 4, 2015 4:30 PM EST

Whether you have to keep on working after retirement, or you choose to, there are real payoffs
for doing so and they arent all financial.

Working has a positive impact on your life, studies show, from keeping you in shape physically
to offering mental stimulation. Being engaged in work also counters the social isolation that can
be so detrimental to the good health of older adults.

By all means, stay on the job if you have no idea what youll do when you leave it. Take the
time to figure out a plan. We all need purpose in life, and that may be hard to find watching
television or taking in the occasional golf game. A 2009 study from the Journal of Occupational
Health Psychology showed that folks who work after retirement full-time or part-time are
generally healthier and happier than those who are fully retired.

You'll Prolong Your Savings Years

Consider the financial benefits that accrue when we keep on working past retirement. Staying
on the job if you dont have enough savings, or are concerned that you might outlive your
money can be a good strategy, experts advise. Working allows your savings to continue growing
while you still reap the benefits of a paycheck.

Other reasons to keep working after retirement include extended employer benefits, especially
health insurance. Your company might also continue to contribute to your 401(k) and life
insurance.

Your Social Security benefit is also a factor. You will be paid nearly 8% more for each year you
delay your claim past full retirement age (66, or 67 for those born in 1960 or later) until age 70.
If youre healthy and willing to work, why not claim more later? (For more, see Want to Retire
Early? Think Again.) If you have a pension, working a few more years may also be worthwhile,
since pensions are calculated based on pay and years of service.

Some couples may want to coordinate their retirements say, to avoid the scenario of one
frustrated spouse sitting home alone surfing travel websites while the other heads to the office
each morning. In that case, the older spouse can keep working a few extra years until the other
hits retirement age.

It Doesn't Have to Be the Same Work

So what are the best job ideas for retirees who dont want to retire?

1. If you simply love your job and your skills are appreciated, then keep on doing it. If you stay in
the same field, reducing the number of hours or switching to part-time instead of full-time may
be possible.

2. Work as a consultant in your field, especially if your skill set is in demand. You have years of
experience, not to mention connections, and a company might pay better wages for a
consultant who provides a needed service without the burden of a benefits package. Because
this kind of work is sporadic, expand your contacts with an eye to further placements in the
future.

3. Take your skills to nonprofits or startups, to mentor others. If you have small business or
journalism background, for instance, you might help set up a community newspaper. If youve
done marketing, a nonprofit could use your expertise to get the word out; someone with an
education background could offer services teaching, tutoring or working in daycare centers.
4. Consider a small retail business, especially if you have collections books, antiques, model
airplanes. Advertising can now be done online, at little or no cost and sales made via eBay or
Craigslist. You can splurge once or twice a year by renting a booth at a fair or flea market.

5. Working part-time may appeal to you, with a view to less stress and responsibility. You might
consider retail, call centers, tutoring, even babysitting. Some part-time jobs will have perks that
might make up for the low salary. For instance, working in a theater gives you a chance to be
on hand for the show or get free tickets, while many restaurants give their workers free meals
before their shifts.

6. Learn new skills that will train you for another career. Through the Department of Labors
Senior Community Service Employment Program (SCSEP), retraining and job opportunities are
available for folks who dont work or cant find work, providing theyre 55 and older. The
program helps subsidize part-time employment and training in community service positions so
that older workers can move to unsubsidized, private sector jobs.

7. Take a page from any artists playbook and stay engaged. Artists, writers, singers continue to
work well beyond the traditional retirement years, usually because they love the work. And
they love the work because they own it, writes Fred Vettese, coauthor of The Real Retirement:
Why You Could Be Better Off Than You Think, and How to Make That Happen. Being in
control, especially if you see your work life as an expression of your creativity, ensures a longer,
more productive experience.

(For more post-retirement job ideas, see 10 Money-Making Jobs for Retirees.)

10 Money-Making Jobs For Retirees

By Basia Hellwig | October 21, 2014 2:40 PM EDT

For more and more of us, retirement doesnt mean the end of work.
Seven in ten people 50-plus want to keep working after they retire,
according to a recent Merrill Lynch/Age Wave study. Among those who
have actually retired, almost half reported that theyd either worked or
plan to work during their retirement. Money isnt the only reason,
although its a good one: People are living longer, company pensions have
pretty much gone away and economic downturns mean we may need to
add that third income stream paid employment to the other
two: Social Security and retirement savings.
But money, it turns out, isnt the main reason retirees want to work: They
do it because they love the intellectual stimulation, the sense of purpose,
and the opportunities retiree jobs offer for making and keeping social
connections and staying physically active. With the backup of Social
Security and savings, seniors are often freer to choose work that matters
to them, even if it doesnt pay top dollar, and that offers the flexibility to
create the life they want.

For each person, the equation will be different. When financial security
tops fulfillment, pay will be a bigger issue, of course. For others, staying
active socially, mentally, physically will be the priority. Some retirees
are happy to trade the stress and responsibility of their career jobs for
something more fun and fulfilling, even if they dont earn anywhere near
as much. Here, then, is a sampling of the range of jobs for retirees.

1. Nonprofit Executive or Professional

After years of corporate work, some retirees are eager to move from
success to significance, as Bill Buford, author of Halftime, puts it.
Bringing sophisticated skills and know-how to an organization whose
mission you feel passionate about can be immensely rewarding. And
while youll likely take a pay cut, youll still earn a professional
wage. Encore.org is full of stories about and help for people looking
for second acts for the greater good. Each year it awards 6- to 12-month
Encore Fellowships to permit skilled, experienced professionals to work
on assignments that will have a sustained impact at social-purpose
organizations. For the Fellows, these serve as a launching pad into
nonprofit careers, or even starting their own nonprofit.

2. Retail Salesclerk

Coming off a high-pressure career job, some people are ready for a
complete change. A foodie working as a cheesemonger at Whole Foods or
a cooking demo assistant at Sur La Table, a graphic designer whos used
Macs her entire professional career taking a part-time gig at an Apple
Store, a passionate woodworking hobbyist helping out at Home Depot
retail jobs can be fun if you choose a store or a product you feel an
affinity with. And the work ethic and knowledge of older candidates can
make them attractive recruits.

Just know going in that retail jobs can be hard on the feet and back, dont
pay big bucks and, while the hours are flexible, you usually dont get to
choose them. On the plus side, youre likely to enjoy great camaraderie
among the staff and benefit from store discounts. Seasonal work is
common, too, which may be just the ticket if you have a specific savings
goal and other projects lined up.

3. Dog Walker
Whos home to take care of the pooch these days? Not the young couple
who adopted a pet or the guy racking up miles and miles of business
travel. In fact, not anyone with a full-time job. For pet lovers, dog walking
has built-in exercise, so youll stay fit, and then theres the bonus of
friendships and warm acquaintanceships that begin over pet encounters.
Dog training or pet care credentials may help you woo clients, as will
offering additional convenience services such as changing cat-litter boxes
or watering plants. The National Association of Professional Pet
Sitters offers training and a referral network.

4. Consultant/Freelancer

Whatever your expertise in a full-time career job accounting, video

production, engineering, marketing, writing you may be able to turn it
into part-time consulting or freelance work. Your previous employer is a
good place to start: Your deep history of the company and your skills
(minus the benefits package) can make you an attractive contract hire:
For instance, a clinic hires a former staff therapist on retainer to answer
sensitive questions and redirect inquiries coming in to the clinics
website. Or an accountant takes on work at her old firm for tax season.

Small companies often need professional help bookkeeping, computer

support but cant afford to put someone on payroll. Your business or
computer skills can be a lifeline for them. Setting up shop as a self-
employed person involves a few steps, but it can be worth it. In fact,
entrepreneurs 55 to 64, recent research shows, are setting up businesses
at a faster rate than any other age group. And they tend to be more
successful on average.

5. Teacher/Tutor

Offering guidance and caring attention to the next generation is a strong

psychological drive at this stage of life, aging experts tell us, which
probably explains why so many retirees are drawn to teaching, coaching
and mentoring. Teaching full-time in the classroom isnt the only option:
part-time work in a literacy program, signing on as a substitute teacher or
an adjunct at a community college, tutoring kids in a range of subjects
(SAT math prep, biology, English), training adult clients in a computer
program or system you know like the back of your hand the
possibilities are endless.

Depending on the job, the credentials you need will differ. Teach for
America is one way into the classroom. Some companies even put
support and money behind their alumni who want to teach: IBM, for
instance, has a Transition to Teaching program; PricewaterhouseCoopers
Project Belize sends staff, including retired partners, to teach financial
literacy in Belize.

Coworking and maker spaces popping up across the country offer all
sorts of opportunities to share your expertise as an instructor whether
its bicycle building, metalsmithing, 3-D modeling, fiber arts, costume-
making or brewing beer. Maker spaces typically split the class fee with
the instructor.

6. Tour guide.

Local history buff or art lover? Become a tour guide and get paid to share
your love for your locale. Connect with a tour company, a museum, a
winery, or a historic site for gigs. Or design and market your own through
a site like SideTour, an online platform for experiences that help people
explore their city. (It operates in Chicago, Washington, Philadelphia, New
York, San Francisco, Seattle, Dallas, Atlanta and Boston.)

7. Craft Artisan.

For those who have always had a hobby (beading, cabinet-making),

retirement finally brings time to pursue that passion and maybe for a
profit. There are many new ways to sell your products Etsy, ArtFire,
eBay, Maker Faire, local craft markets. Apps such as Square and PayPal let
you take payments, and Pinterest and Instagram showcase your creations.
All these developments make it easier than ever before to turn your
hobby into a business.

8. eBay shopkeeper.
The most successful eBay sellers have a well-defined niche. Think about
what you love crazy quilts, 19th-century silverware, Japanese ceramics.
And then theres what you have. Maybe youre downsizing and need to
declutter, or perhaps its time to edit that treasured collection. Heck,
maybe its time to get rid of it altogether.

Start small. While youre unlikely to become an eBay millionaire, you will
at the very least be getting paid to give yourself some breathing room at
home (your kids will thank you). And if you have the heart of a trader and
find the right niche, you may be able to grow your eBay shop into a nice
little sideline business. Make sure you have good pictures (emphasis on
good) and check on your locations requirements about collecting sales
tax. The eBay Seller Center is a helpful resource.

9. Theater Usher/Ballpark Ticket Taker

Sometimes these jobs are volunteer, but theres a big bonus: You get to
see the show or the game for free. In bigger theaters and concert halls,
ushers and concession workers earn a stipend or a modest hourly fee.
And there are other perks: Being a ticket taker at a ballpark or an usher at
the ballet has a funny way of recapturing childhood dreams yours and
those of the young patrons youre seating. You become an insider, spend
time surrounded by fellow fans, and may even rub elbows with a celebrity
fan or some of the stars. Apply directly to the theater or ballpark.

10. Santa Claus.

Each fall, malls across America hire people to be Santa Claus, Mrs Claus,
or one of Santas elves. Those outfits can be sweaty, but a stint as Santa
can bring in $10,000 for a holiday season and some great moments to
remember. Santa School in Calgary, Alberta, offers training. Noerr
Programs Corp. lists Santa jobs for "kind gentlemen with natural white
beards." Talk about childhood dreams.

The Bottom Line

 Retiree jobs can bring in a welcome third stream of income to
supplement Social Security and retirement savings. They can also make
retirement life richer and more satisfying. No one job fits all. Think about
what you need in your life money, the chance to give back, fun, social
connections, physical activity, intellectual stimulation and theres a job
out there for you. For more on this topic, see The Best Jobs For
Retirees and Impact Of Continuing To Work In Retirement.

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Read more: 10 Money-Making Jobs For Retirees |

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The Bottom Line

Whether you have to continue working into the traditional retirement years, or you choose to,
there are many payoffs from the social and health benefits of staying actively engaged to the
financial rewards from accruing more savings. Finding the right work for those post-retirement
years is challenging but rewarding. Consider staying on the job, consulting, mentoring, retraining
or opening a small business.

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2. When to start tapping your nest egg Its bit like trying to land an airplane at just the
right spot on the runway. Most retirees dont know precisely when to start withdrawing
from their savings and investments, but The Wall Street Journal reported in 2005 that
many start withdrawing at the age of 62. For most people, thats too early. Many experts
now use age 95 for financial forecasting purposes. According to Andrew Nigrelli, a
wealth advisor at Northeast Planning Associates, It all depends on how much you have
saved and what types of outside income sources you have, but even at age 65, most
people probably have another 30 [years] to support themselves after they stop working,
he explains.
3. When to start taking Social Security to get maximum benefits Understanding how
Social Security works before you're eligible to start taking will help you make a good
timing decision. Right now, the earliest age you can start taking Social Security is 62, but
full retirement age is usually 66. Every year you can hold off on taking benefits between
the ages of 62 and 70 increases your monthly check. The Social Security
Administration's website explains how retirement ages work here, but if you have
complicated financial family relationships or youve lost a spouse or have remarried it
can be worthwhile to get some solid advice. A qualified fee-based fiduciary advisor can
run "what if" scenarios using sophisticated software that can pinpoint the optimal time to
start taking your benefits. How Social Security Works After Retirement can help you
think more about these issues.
4. When to start giving money away Legacy planning is a key driver in determining
much you can afford to spend during your later years. Much has been written about the
 huge sums of money future generations will receive from parents. Dont let the idea of
leaving behind a big inheritance cloud your judgment on how much of your savings you
will really need to support yourself. No one wants to become a financial burden on their
own children, but it can happen when parents underestimate the real cost of retirement.
If youre certain youll have more than enough money to cover your own lifestyle, and
healthcare, then consider giving some of it to your future heirs right now. This is
beneficial to you and your heirs because it helps reduce the inheritance tax. In the U.S.,
the IRS allows you to give away up to $14,000 per year per person (as of 2016) before
the gift tax kicks in. This amount changes every year, so if you're going to do this, stay
up to date on the amount of annual exclusion. Married couples can double their gifts,
which means they can give up to $28,000 to each child per year before the gift tax is
charged. Use the same kinds of considerations to decide about what you'll have left for
charitable giving.

When you've scheduled in these four events, you can estimate what you'll have to live on and
what kind of adventures that will buy you. You can also think about whether to stay where you
are, downsize (or upsize: see 5 Reasons Retirees are Upsizing Instead of Downsizing Their
Homes) and plan other parts of the way you will live your life. (Read The 4 Phases of
Retirement and How to Budget for Them.)

The 4 Phases of Retirement and How to Budget for Them

By Amy Fontinelle | Updated May 8, 2017 3:50 PM EDT

If youre financially prepared and physically healthy, retirement can last for
decades. The different stages that make up your retirement have different
expenses and require distinct approaches to budgeting. Even with a shorter
retirement, youll go through the same stages, just in a condensed time frame.
Heres what those stages look like and how to handle your finances accordingly.
Peri-Retirement (50 to 62)
Peri-retirement is the stage just before retirement. Youre still working, but
retirement is in the near-enough future that youre finally getting a clear picture of
what your nest egg, income and expenses will look like. Youre also getting closer to
figuring out what youll do with your days once youre free to fill them as you please.
What seemed merely theoretical earlier in your working life starts to seem real.
We put age 62 on it, the age when people first qualify for reduced Social Security
payments. But you might retire at 60 or keep working past 70.
At this stage, you should assess what your likely income and expenses will be once
you're no longer in the workforce. What will you receive from a pension or Social
Security? What is the balance in your retirement plans, such as 401(k)s, 403(b)s or
IRAs, and how much will you be able to comfortably withdraw each month? Will you
have paid off your mortgage already, and if not, how much will you still owe and for
how long?

You may be in a strong enough position to seriously evaluate whether you can afford
to retire early. Your employer might downsize and you might find yourself
considering whether to accept a buyout (see Should You Accept an Early
Retirement Offer?) or be forced to accept one. If you run a family business, this
is a good time to create a succession plan. And if you arent where you want to be
financially, it's a good time to work more, change jobs or actively pursue a
promotion so you can earn more and save more for retirement while you have the
chance. For more, see 6 Late-Stage Retirement Catch-up Tactics.

Peri-retirement is also a good time to reevaluate your monthly and annual expenses
and cut back on costs that have crept up over the years to eliminate any wasteful
spending and give your retirement budget some breathing room. Also, at this stage
(as well as, possibly, the early stages of your retirement), you may still have major
expenses like putting your kids through college, making a down payment on a home
or paying for a wedding. Finally, you might want to replace your usual vacations with
trips to places youve envisioned yourself moving to during retirement. (For more on
this subject, read Peri-Retirement: The New Life Transition.)

Early Retirement (62 to 70)

Some of the biggest changes in your budget will occur when you first retire. Youll
no longer have a steady paycheck from your employer, unless you get a pension.
Youll need a plan for managing your income during retirement, and youll need to
decide when to start claiming Social Security benefits. Youll also no longer have
employer-sponsored health insurance. Make sure to plan for how your spouse and
any dependents will get health insurance if they are on your health plan. If you or
your spouse wont be old enough to enroll in Medicare yet, youll need to see if you
qualify for Medicaid or sign up for a marketplace plan.
You might also want to buy long-term care insurance if you haven't already (some
experts advise buying it in your mid-50s for the most choice and best rates).
Premiums will run you several thousand dollars a year, but can end up being a bargain
if you find you need nursing-home or other long-term care (see What's the Best
Time to Get Long-Term Care Insurance?).

You may be tempted to go on a spending spree at this early stage of retirement:

You'll have lots of free time and you'll likely still be healthy and energetic. In this
honeymoon phase, you might want to buy that sports car youve always imagined
yourself driving, take an extended European vacation, go to culinary school or take
up sailing. With more freedom to travel, you may want to buy a vacation property in
your favorite spot or a second home in a sunny locale to escape to during harsh
winters. Hold back: You can quickly blow through your savings if you treat entering
retirement like winning the lottery.

One way to manage these new expenses is to take a part-time or seasonal job, start
a business that gives you flexibility in your hours and location, or let yourself
indulge for a while before jumping into a new career the one you could never get
into before because it didnt pay enough. Earning $35,000 a year doesnt cut it
when you need $70,000, but once youve retired, it looks better than earning
nothing, and at this point its more about personal satisfaction, anyway. (Read Don't
Retire Early Change Careers Instead.) You can also balance the expensive
activities you want to spend time on with inexpensive or free ones: Volunteer to
train service dogs, teach a photography class at your local community center or lead
biking excursions.

This might be the time to move somewhere more desirable now that your job no
longer ties you to a certain location. There will be costs associated with moving, as
well as possible transaction costs associated with selling your home. Have you ever
dreamed about retiring in Ecuador, France or Monaco? Depending on the cost of
living where you currently reside versus that where youre headed, moving could be
a boon to your financial situation or a major belt-tightener.

Middle Retirement (ages 70 to 80)

By middle retirement, youll be receiving Social Security benefits (the longest you
can hold off from claiming benefits and get increased payments is age 70). At
age 70.5, youll have to start taking required minimum distributions from certain
types of retirement accounts: profit-sharing, 401(k), 403(b), 457(b) and Roth
401(k) plans, as well as traditional, SEP and SIMPLE IRAs (but not Roth IRAs). Now
is a good time to reassess your asset allocation if you aren't in an investment that
does this for you, such as a target date fund.

In addition to receiving more income in this stage, you might be tired of some of
the travel and new activities you pursued during early retirement, so your expenses
might decrease. You might be in the mood to stay home more, or your travel might
be centered around inexpensive trips to visit your grandchildren. With luck, your
kids are established enough in their careers that they no longer turn to the Bank of
Mom and Dad. In addition, you probably arent paying for term life insurance or
long-term disability insurance anymore: These policies typically expire when you
turn 65.

You may have created a will or estate plan when your children were young because
you wanted to make sure theyd be taken care of if you and your spouse died
simultaneously in a car accident. Have you updated these documents since then?
While youre still healthy and mentally capable, make sure your estate plan is in
order so your money and assets are distributed the way you want after you pass
away. You should also give someone financial power of attorney that will kick in if
you become unable to manage your money and healthcare power of attorney in case
you need someone else to make your medical decisions. (For related reading,
see Advice on Wills: Should Each Child Get the Same?)

Late Retirement (80 and up)

In late retirement, you may have higher healthcare costs to treat a chronic
condition or an acute illness. Medical spending tends to be highest in the last years
of life. Medicare will cover some of your expenses, but youll still have out-of-
pocket costs for copayments, deductibles, coinsurance and/ or prescriptions. You
might have new expenses if you decide to move to an independent or assisted living
facility or if your health means you need to move to a nursing home or hire a home
health aide. (For related reading, see How to Pick the Right Nursing Home.) If you
have long-term care insurance, it will ease the burden of any nursing-home or home
health aide bills. Aside from a possible increase in healthcare costs, your other
 expenses will be similar in late retirement to what they were in middle retirement
unless you make a major change, like moving.

Youll want to reassess your nest egg and decide whether you should be withdrawing
money at a faster or slower rate. If youre running low on cash and you still live in
your home, you might consider a reverse mortgage as a source of funds. (Learn
when a reverse mortgage is a good idea or bad idea and how to protect your spouse
from losing the home.) Looking at what you have left, youll need to think about what
you want to spend during your lifetime and what you want to leave to others. Make
sure any charitable bequests are in place. (See Choosing the Best Charitable Gift
Annuity.)

The Bottom Line

Retirement is both an event and a process. In a best-case scenario, your savings will
need to last three decades or more. The expenses at each state of retirement are
associated with how you choose to spend your time, where you decide to live and
how your health holds up. If you take these factors into account and evaluate how
they will change throughout your retirement, you can budget accordingly.

At each stage, spend the time to crunch the numbers and draw up those budgets:
It's the best way to understand where you are and what to do next. This might be
the time to look into the 4 Best Apps To Track Your Retirement Money. Why not
let technology help?

For further reading on the emotional stages you'll be traversing as you adjust to
retirement, check out Journey Through the 6 Stages of Retirement.

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There's one last step: Not keeping all this a secret.

Dividing Family Assets Without Dividing the Family

If you care enough about your family to include them in your will after you've passed away,
include them in your planning process while you're alive. Call a family meeting, but prepare your
remarks first. Say something like, "We need to discuss how we plan to allocate our money to
cover our retirement and then talk about whatever might be left."

The goal here is to avoid a big family fight over what you leave behind by setting everyones
expectations in advance and not leaving unanswered questions. Remember, when it comes to
an inheritance, the kids may not work it out amongst themselves later.

Pam Krueger is the founder of "WealthRamp," co-host of "MoneyTrack" on PBS and national
spokesperson for The Institute for the Fiduciary Standard.

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