For many retirees, converting a nest egg into a predictable source of income proves far more challenging than it ever was investing for growth.
It’s harder still in an environment where bond yields and bank rates are wallowing well below the rate of inflation , offering seniors little more than a loss of purchasing power for their fixed income investment.
As such, many have been forced to explore new strategies to give themselves a paycheck. Here are five to consider:
Those 62 and older may be able to convert a portion of their home equity (usually no more than half) into cash by taking out a reverse mortgage.
As the name implies, such loans work in the reverse order from a typical mortgage, in that you receive a monthly check from your lender based on the amount of equity you own.
There are generally no income restrictions for eligibility, and according to the Federal Trade Commission, the proceeds from your home are tax-free and do not affect your Social Security or Medicare benefits.
Better still, you do not have to repay the loan as long as you live in your home, though it must be repaid when the last surviving borrower dies, sells the home or no longer uses it as a primary residence.Page 1 of 6 | Next Page