Americans are so busy that they often have a hard time balancing demands for work and their personal lives. In fact, participants in a recent survey reported having only an average of 26 minutes of free time each week.1
Where does the time go? The Bureau of Labor Statistics reports that women have not only increased the number of hours they work outside the home, but they also are spending more time caring for children and doing housework.2
Then again, today’s average adult spends an hour and a half online daily.3 Of course, that could include time-saving tasks such as shopping for groceries and paying bills, so it may not be completely social or leisure time.
Perhaps if Americans spent as much time planning for retirement as we do planning for meals or checking sports scores, we wouldn’t be as concerned with running out of money. Time is a funny thing; it can work with you or it can work against you. Over time, inflation can put a dent in purchasing power — particularly once you live on a fixed income. If you’ve got longevity in your genes, you may want to consider ways to help make your money last longer. We believe time is the best way to earn interest and grow wealth. If you’re looking for ways you can use time to your advantage or leverage your assets to help create income throughout retirement, we have ideas.
One of those ideas is to consider purchasing an annuity contract. Annuities are a financial product that can provide a lifetime insurer-guaranteed payout, so no matter how long you live, you can still receive a minimum level of income. It’s important to keep in mind that annuities are insurance contracts designed for retirement, and they provide guarantees of principal and credited interest, subject to surrender charges.
If you’re running out of time before retirement, it’s never too late to buckle down and start living well below your means. Start by determining how much you need to save each month, and devise a budget around that number. This is also good practice for retirement. 4
If you’re thinking of selling your home or downsizing, now may be a good time. Mortgage rates are still historically low, but residential prices remain high due to low inventory, creating an ideal seller’s market. This trend may not continue in the coming months as threats of a recession loom. Once home prices drop, buyers have more options and negotiating power. 5
1 CW Headley. Ladders. April 3, 2019. “Survey: The average American has less than half an hour of free time per week.” https://www.theladders.com/career-advice/the-daily-task-americans-are-neglecting-the-most. Accessed Sept. 25, 2019.
2 Katherine Schaeffer. Pew Research Center. Sept. 24, 2019. “Among U.S. couples, women do more cooking and grocery shopping than men.” https://www.pewresearch.org/fact-tank/2019/09/24/among-u-s-couples-women-do-more-cooking-and-grocery-shopping-than-men/. Accessed Sept. 25, 2019.
3 Eric Griffith. PCMag. Aug. 29, 2019. “State by State: Alaskans Spend the Most Time in Front of Screens.” https://www.pcmag.com/news/370447/state-by-state-alaskans-spend-the-most-time-in-front-of-scr. Accessed Sept. 25, 2019.
4 Adrian D. Garcia. Bankrate. Sept. 25, 2019. “Survey: Scary percentage of Americans financially unprepared for recession.” https://www.bankrate.com/surveys/top-financial-priority-september-2019/. Accessed Sept. 25, 2019.
5 Aly J. Yale. Forbes. April 18, 2019. “With A Recession Looming, Is Now The Time To Sell Your Home?” https://www.forbes.com/sites/alyyale/2019/04/18/with-a-recession-looming-is-now-the-time-to-sell-your-home/#794d17285bce. Accessed Sept. 25, 2019.
Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance carrier.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.