How Balanced Is Your Financial Plan?

by Carol Marak, a Solo Aging Expert

In the recent newsletter, How Balanced Is You Plan, you were given a list of ten questions to see how well you are meeting responsibilities and finding solutions to mitigate the increasing concerns while also recognizing and fulfilling personal needs and wants.

Each one is critical for finding peace of mind and living with balance and ease.

Today, let's dive into question #1: What strategies have you put in place to ensure that your financial resources will support you through all stages of aging, and what creative approaches could you take to improve your financial security? 

The more options you discover, the more comfortable you'll feel about the future. 

To ensure that financial resources will support solo agers through all stages of aging, exploring unconventional methods can provide additional security and peace of mind. Here are five creative approaches (some I just learned about:)

1. Micro-Investments

• What it is: Micro-investments involve investing small amounts of money into diverse portfolios, often through digital platforms or apps, which can grow over time.
• How it works: Solo agers can use apps like Acorns, Stash, or Robinhood, which allow users to invest spare change or small amounts regularly into stocks, bonds, or ETFs. This method helps accumulate wealth gradually without requiring significant upfront capital.
• Benefits: It’s a low-barrier way to start investing, diversifies income streams, and allows for incremental growth of financial resources over time.

2. Shared Housing Arrangements

• What it is: Shared housing arrangements involve living with others to reduce living costs, provide companionship, and share household responsibilities.
• How it works: Solo agers can explore co-housing communities, home-sharing platforms like Silvernest, or find compatible housemates through local networks or online communities. Some arrangements may involve exchanging reduced rent for services like caregiving or house maintenance.
• Benefits: Reduces housing expenses, provides social interaction, and can create a supportive living environment as one ages.

3. Monetizing Hobbies or Passions

• What it is: This involves turning a hobby or passion into a side business that generates income.
• How it works: Solo agers can identify activities they enjoy—such as crafting, writing, cooking, or gardening—and find ways to monetize them. This could include selling handmade items online, starting a blog or YouTube channel, offering workshops, or creating digital products like e-books.
• Benefits: Provides additional income, adds a sense of purpose, and allows individuals to engage in activities they love while potentially expanding social connections.

4. Peer-to-Peer Lending

• What it is: Peer-to-peer (P2P) lending is a method where individuals lend money to others through online platforms, earning interest as the loans are repaid.
• How it works: Platforms like LendingClub or Prosper facilitate these loans, allowing solo agers to invest in small, diversified loans to various borrowers. The returns come in the form of interest payments.
• Benefits: Offers potentially higher returns compared to traditional savings accounts, adds another income stream, and allows for investment diversification.

5. Downsizing 

• What it is: Downsizing involves moving to a smaller, more affordable home, while equity release allows individuals to tap into the value of their home without selling it outright.
• How it works: Solo agers can sell their current home and move to a less expensive property, freeing up capital to invest or use for other purposes. Alternatively, they could explore equity release schemes like a reverse mortgage, which provides regular income while retaining homeownership.
• Benefits: Reduces living expenses, frees up cash for investments or other needs, and can improve the quality of life by moving to a more manageable living environment.

These unconventional methods can significantly enhance financial security for solo agers, allowing them to maintain independence, pursue their passions, and live comfortably through all stages of aging.

Thank you for reading!

Carol Marak, Solo Aging Expert

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