What Is the No-Savings Retirement Plan?
Some financial experts might suggest that you need well over a million dollars if you want to have a comfortable retirement. This simply isn't the case. Though it's always best to have some money socked away for unexpected expenses, you will earn some money through Social Security. You can still retire if you haven't saved money in a 401k or IRA, especially if you're willing to get creative with your living arrangements.
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Reducing Your Expenses
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The key to living on the small amount of money that you'll get from the government or from a company pension is to reduce your cost of living. Before you retire, you should pay off your home. Ideally, you should live a smaller home in an area with low property taxes. You'll have time to garden, so grow your own foods to reduce your grocery bill. Don't expect to take lavish vacations; make use of the free and cheap resources located nearby.
Working Part Time
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You can still work a job while you earn Social Security benefits. As long as you earn less than the yearly cap, you'll receive full benefits. In 2011, for example, someone who's 65 or older can earn up to $37,680 before the government will start reducing your Social Security check. A part-time job will not only earn you a bit of money, but it can allow you to interact with others socially and give you something to do with your time.
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Earning Royalties
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In some cases, you can do the work once and earn money on what you did for the rest of your life. When you write a book, for example, you can earn royalties indefinitely. Publishing platforms through major retailers like Amazon and Barnes and Noble allow you to bypass the traditional publishing route and self-publish. Additionally, you can earn money from building websites, such as a blog, writing about the things that you care about.
Creative Solutions
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Your Social Security check may not get you far in America, but in some countries, you could live like a king. Favorable exchange rates in places make your dollar stretch a lot further and some people opt to retire abroad. Alternatively, retiring aboard a cruise ship may be right for you. Cruise companies offer deep discounts to return customers and your room and board is included in the cost of your ticket. Going from one cruise ship to another allows you to travel while taking care of your basic needs. In some cases, this is cheaper than living on land.
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References
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