5 Retirement investment exit strategies to maximize cash flow

Leverage your 401(k)

First and foremost, you should look for strategic ways to leverage your 401(k) retirement plan. After all, your 401(k) is one of your largest assets as you approach retirement. Fortunately, there are plenty of effective ways to leverage your retirement account to maximize your cash flow. If you retire after the age of 59 and one-half, you can begin taking qualified distributions without early withdrawal penalties. Of course, you can obtain early retirement money by taking advantage of the “age of 55” rule. Using this retirement exit strategy, you can enjoy quick access to money and maximize your financial control. Simultaneously, you can access reliable tax breaks and a predictable post-retirement income through utilizing your 401(k). Certainly, leveraging your 401(k) account is an excellent way to maximize your retirement cash flow. 

Utilize your nest egg 

Next, you can utilize your nest egg to effectively manage your money during retirement. Your retirement nest egg consists of all the money you have saved, as well as investment profits earned by that capital. As you approach for retirement, you can leverage these funds to enjoy a more comfortable, stable cash flow. However, you may want to avoid utilizing your personal savings if you have alternate streams of income. This way, you can keep your nest egg invested and continuously growing. In fact, many successful retirees have even leveraged their nest egg savings to leave a legacy to their heirs. Surely, utilizing your personal nest egg savings is another strategy to maximize your retirement cash flow. 

Accessing your equity using a reverse mortgage

A reverse mortgage enables you to borrow money using your home as security. This way, you can access the unencumbered financial value of your property without taking on a new mortgage payment. Using this post-retirement exit strategy, you can eliminate monthly mortgage payments and remain protected against housing market declines. Make sure to find a lender that has your best interest, “Doing the right thing in our business, reverse mortgages, means doing what is right for senior homeowners.”, says founder Michael Branson of All Reverse Mortgage. One of my statements that I use often, and I hear it repeated by others and am very happy when I do is “I would rather you not get a reverse mortgage for the right reasons that get one for the wrong reasons”. 

Accessing your real estate equity can be an exceptional retirement exit investment strategy to maximize your monthly cash flow but as with any financial product consider the pros and cons and speak to your trusted advisor about suitability.  

Manage your investment income

If you currently hold any stocks, bonds, mutual funds or other types of market traded instruments, be sure to leverage them for your post-retirement income. Look for any investments that are not currently performing well. Then, look to sell them for liquid cash. This way, you can maximize your monthly cash flow without touching your nest egg savings. If you notice stocks or other investments that are doing particularly well, you may want to leave them to grow. Naturally, this empowers you to continue to grow the value of your portfolio, even during retirement. Indubitably, managing your investment income is a perfect way to maximize post-retirement cash flow. 

Delay social security payments

Furthermore, you can delay your social security payments in order to maximize your monthly retirement cash flow. For every year that you delay social security payments before you turn seventy, you can significantly increase the amount you receive in the future. Since age 62 is the earliest you can receive SSI benefits, you can potentially defer your payments for up to eight years. Of course, this will make a significant difference in your overall retirement income. Certainly, deferring your social security payments to a later date is a great way to maximize your cash flow. 

There are plenty of effective retirement investment exist strategies to maximize your monthly cash flow. First and foremost, you should look for strategic ways to leverage your 401(k). Next, you can utilize your nest egg to maximize your retirement cash flow. Of course, you can sell your real estate equity. If you currently hold any stocks, bonds, or other types of market traded instruments, be sure to leverage them for your post-retirement income. Furthermore, you can delay your social security payments to a later date. Follow the points mentioned above to learn about the solid retirement investment exit strategies to maximize cash flow. 

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