Tags: Brooks | retirement | cash | income

USA Today's Brooks: 3 Ways to Combat Retirement Cash Shortfall

Wednesday, 16 Jul 2014 02:43 PM

By Dan Weil

Many Americans haven't saved enough to provide for the retirement lifestyle they'd like to pursue.

So what's the solution? It's not necessarily to stay in your job until you're about ready to drop, says USA Today's Rodney Brooks. Instead, he suggests three other options.

1. Turn your hobbies into additional income.

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Herb White, president of Life Certain Wealth Strategies in Denver, tells Brooks of one client, a former engineer, who now teaches the clarinet, bassoon and saxophone. And another of his clients, once a nurse, became a substitute teacher.

2. Embrace the shared economy.

For example, just as bed and breakfasts rent out rooms, you can rent out your rooms in your house. "Retirees can rent out rooms of their house for as much as $100 a night," Sandy Franks, executive director of the Women's Financial Alliance in Baltimore, tells Brooks. In addition, you can rent out your kitchen appliances and tools, as well as your car.

3. Sell or rent your home and move into a luxury home.

Showhomes in Nashville allows people to stay in fancy homes that it's trying to sell, because the homes look better to potential buyers when someone is living in them. "People have trouble visualizing a home when it's vacant," Matt Kelton, chief operating officer, tells Brooks, adding that you pay 30 to 50 percent less than the market rate for rent.

"I think that when people are in this position [of not having enough savings for retirement], they need to try not to worry and panic, because they have options," Sandy Franks, executive director of the Women's Financial Alliance in Baltimore, tells Brooks.

"They get too worried and panic."

Meanwhile, Ron Carson, CEO of Carson Wealth Management Group, offers three tips for those who started saving late for retirement or have suffered a financial setback that trimmed their retirement savings in a guest commentary for CNBC.
  • Increase your income and savings.
  • Manage your spending.
  • Increase your investment return.
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