This Fun Adventure Can Add $24K Or More To Your Nest Egg

Is your retirement savings less than you would like it to be?  Maybe another $24,000 dollars socked away would make you feel a little more secure.  Do you love other cultures and traveling to other countries?  Are you a helper?  Do you have sincere desire to make the world a better place?  If you answered yes to those questions, then I think this idea might be perfect for you!

An Idea Is Born

I lay in bed trying to fall asleep as wonderings of my retirement years dance in my head.  What will I do?  How do I build my savings so that I feel more secure?  At this rate I won’t be able to stay in my home and will have to move, but where will I go?  Can I downsize and cut costs by maybe living in a park model or RV or a 55+ community somewhere warm?  Am I ever going to be able to travel outside the country again?  Oh, I so love traveling!  Maybe I could become an expat and live in a country where my money goes farther. On and on the thoughts circle in my head, until – flash! – the light bulb switches on and a new idea is born.

Now, let me preface this by saying that this idea is not for everyone.  If you don’t like helping people, or traveling to another country, or saving money, then this might not be your cup of tea, but keep an open mind and see if the seed that is planted begins to sprout.

I have spent most of my life working to pay my bills, like most people, and I envision myself not working during my retirement years.  That would be my ideal vision of my post-work era.  A good number of my jobs have been in the non-profit sector where I have gotten a great deal of personal satisfaction knowing that in some small way I was making a difference.  In my retirement, I hope to continue to be able to do the same.

Before I share my – flash! – idea, let’s consider a few questions.

Question 1. Would you like to have another $24K in your savings?

I can’t imagine anyone saying no to this question.  Like many others, my retirement savings took a hit a few years back when the market took a nose dive and I am rebuilding, so I am open to considering all types of options to increase my nest egg.  “From humming bird egg to ostrich egg,” is my retirement mantra!

Question 2.  Internationally, what country do you dream of visiting or living in?

Imagine living in another country, maybe in Africa, Asia, or Central or South America.  Maybe it is a country that calls to you on a deep level, one that you have always want to travel to. Or maybe the country you dream of is one where you would like to setup housekeeping during your retirement, but you don’t know the culture yet and haven’t had a chance to visit.   I have always had an affinity to Central and South America.  I think I might choose Guatemala, Peru, Ecuador, or maybe even Chile.  What country would you choose?

Question 3.  When you retire, will you have the freedom, the desire, or the need to move?

Can you free yourself up from the housing ties that bind you?  Are you going to have a housing transition when you retire?

I realize that am going to have to sell my house when I retire, because my incoming won’t cover the outgoing.  I am going to enjoy my house for the next 8.2 years, and then my options will be wide open.  Are you planning on downsizing to smaller place?  Maybe you think about moving to a 55+ community in the land of the sun or buying an RV and heading down the road to destinations unknown?  If you are going have a “transition” period between the life you lead now and the life you will be leading after retirement, then this idea just might be for you.

Question 4.  Are you up for an adventure?

Retirement is a time to live the life you have always dreamed of. For some, that means having the adventures you have only read about in books or seen in movies. The exciting thing about retiring is that you can now create the life you want, including the adventures of your dreams.

Question 5.  Can you commit 2 years of your life to having the experience of a lifetime, while making a positive difference in the world at the same time?

If you could volunteer, save $1000 a month of your social security income, and have an international experience in the country of your choice, would you do it?  That would be a $24,000 increase to your nest egg in only 2 years.  Tell me, you aren’t just a little intrigued right now?

So, Here Is The – Flash! – Idea

Join an organization for a 2 year commitment, while volunteering and living in another country, and save money in the process.

First, you will need to figure out how to detangle yourself from as many bills as you can before you go.  Sell your house, rent it out to someone you trust, or plan the timing so your volunteering commitment coincides with the end of your lease. You now have the essential cost savings plan in place.

Now, join the Peace Corps!  Yes, the Peace Corps.  It’s not just for young adults anymore.  More and more retirees, couples (straight and same-sex) and singles, are joining the Peace Corps well into their retirement years… their 60s…70s and even 80s!  The application process has been simplified and the wait time for acceptance has been shortened to about 6 months.  You can pick the country you would like to serve in from a list on their website, as well as the kind of service you are interested in doing.  You choose!

For the 2 years that you are living in a land that you have dreamt of, while providing service to the community, you are not paying any rent, mortgage or utilities back home.  The money you would have spent from your social security check toward those expenses can now be dropped directly into your retirement savings!  Estimate a $1000 a month savings (yes, probably on the low side for some) for 2 years and wha-lah, your savings will have a $24,000 boost. Oh, and did I mention that they pay returning volunteers a readjustment allowance of a little over $7000?  Add in 48 days of vacation, full medical and dental, family leave in emergencies, travel to and from the country, training and more, and you have a perfect package for overseas volunteering.  What are the Benefits?

The Most Important Consideration

Beyond the financial benefit, I think the most important consideration in this equation is, do you want to be of service on a global scale? Do you want to give back and make a difference in another culture?  If you do, then the financial increase to your retirement nest egg is only a small bonus. The biggest bonus is how much the experience will fill your heart and the hearts of those you encounter. It’s overall a win-win, wouldn’t you say?

Would you consider volunteering outside of the country when you retire?  Where would you like to go?  Your comments, as always, are welcome below.

 

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Using the “B” Word to Create Your Retirement Dream

The question at hand – Are you ready to use the “B” word?

Dreams

What is your biggest consideration when planning for your retirement?  What questions are you asking yourself? Where you will live?  Will you move to the land of the sun, be a snowbird or stay near the grandkids, family and friends? Will you travel the United States or venture out to the far corners of the globe?  Is your health good or can you get those health challenges in control, in order to open up your options?

Certainly, all of those questions need to be addressed at some point, but before answering them there is one key aspect that needs to be looked at, and that is money.  Maybe you are one of those lucky people whose retirement fund has grown exponentially or has remained stable throughout the economic fluctuations of the past decade or two. However, if you are like most Baby Boomers, your future retirement has been greatly impacted by the economic shifts and you need to reassess and reconsider what your future holds.

Humpty Dumpty

A number of years back, I moved to Peru with a dream of starting a non-profit. At that time, I considered myself pretty set for retirement.  I had worked for over a decade for a large corporation that had an excellent 401K matching program, and as a result, I had stashed away a considerable amount of money. With continued growth of that account, even after leaving the company, those funds would over time have created a very nice retirement nest egg.  Security for the future!  So, off to Peru I went, and during the time that I was in Peru – CRASH! – the market dropped dramatically, and I saw my nest egg go from ostrich to hummingbird in the blink of an eye. To make matters worse, the big bad wolf had snuck in the coup while I was gone, leaving nothing but a tiny shattered shell.

Over time, I worked to rebuild that nest egg, but without an amazing matching program and a financial market that just won’t bounce back, it became increasingly apparent that that Humpty Dumpty had fallen and even all the King’s men weren’t going to be able to put him back together again.  All that I had left was a little shattered egg, laying there in little broken pieces, unable to grow.   Time for a financial funeral, some grieving and then, as healing begins – move on.

Before the big bad wolf had its hay day with my savings, my dream for retirement was to take a trip around the world and see all the places that I hadn’t been to yet.  I wanted to have a nice, modest home and live as I always had, enjoying time with family and friends, attending a wide array of entertainment of my choosing, traveling, adventuring, just living a comfortable life.

Looking for Some Answers

It was time to begin “re-saving”, if that’s a word, and start some major problem solving! With my retirement looming only 100 months away, I started concerning myself with retirement income.  One Saturday morning I got up, made myself some coffee and turned on the computer to start figuring it out.  What were my options? I looked and searched, and looked and searched some more, until finally, with a zillion ideas circling my head, I said to myself – How can I decide what to do in the future without all the information I need? It was then I realized that I couldn’t come up with the answer until I had asked and answered all the right questions.

The “B” Word

So, I started with the basics, a budget.  Yes. There, I said it – the “B” word. Budget. I began looking with a critical eye at my day-to-day spending, down to the penny.  I use my debit card for all my daily spending, checks for some of my living expenses, and credit card only for large purchases or expenses that were emergent. Fortunately, I only had 3 accounts to look at. With a hot cup of coffee, my laptop, and Maggie Mae, my forever companion by my side, I created a spreadsheet that showed me exactly what my monthly living expenses were for the past 12 months.  Included were those expense items that fluctuated, such as gas, groceries, medical expenses etc., as well as those that were the extras, things like travel expenses, entertainment, lunches out, and coffee.  Yes, coffee.  Living in the Northwest corner of the U.S., there is a coffee culture and it sucks the money right out of your bank account.  What an eye-opening exercise this had been!  So long major Seattle coffee chain!  It has been good knowing you!

All of this information went into a spreadsheet for future reference, saved onto the computer and printed out.  Now, I have the information I need to make an informed decision!

Boone’s Farm Wine

As I looked at what my monthly resources will be in retirement, and after detailing out my present budget, and estimating my retirement income, I realized that I could stay in my house after retirement if  A) I never go anywhere, B) I never do anything, and C) I sit in the dark in the evening with a candle for light and warmth, sipping a glass of Boone’s Farm Strawberry wine.  It’s not exactly what dreams are made of. So, after a “feel sorry for myself” moment, I decided to take the bull by the horns and find a way to make it work.  As a result, I have come up with a number of exciting options and I feel optimistic for the future!

Tips

My recommendations to those readying for retirement is to first bite the bullet, sit down and looked at your budget with a fine tooth comb.  Asking the right questions and having the necessary information at your fingertips, will allow you to make informed decisions.

• Know your current monthly expense. Create a budget based on the real numbers. Make it detailed.
• Identify your monthly retirement income. Include the guaranteed monthly retirement income from your employer’s plan, social security income, monthly annuity payments.
• Ask yourself – Does my projected retirement income cover my present expenses?
• If your anticipated retirement income doesn’t meet your present expenses, then recognize that some creative thinking and problem solving is in order. How much is the gap? If you make some minor changes in lifestyle and spending, can you make it work? If not, then it’s time to regroup and look at options.  Oh, and remember to add inflation into the mix.
• Take a deep breath and visualize a great retirement. You deserve it. Know that there are a myriad of amazing options out there for you to choose or create, regardless of your retirement income!  It’s like plucking apples off of the tree!

Have you taken the time to look at your present budget and projected retirement income?  What are some ideas that you are doing now that can help close that gap?  Share your thoughts and ideas below.