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Nearing retirement, your thoughts start to drift farther and farther away from the job at hand and closer to what you’ll be able to do in all that free time - catch up on some reading, enjoy an afternoon on the back nine or travel the world with your husband or wife.

A 401(k) is one of the best ways to save for a secure retirement, but if you work for yourself or a small enterprise, this added perk may not be available to you. However, that doesn’t mean you can’t still save for retirement on your own. 

In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32 percent by 2022, up from just 20 percent in 2002.1 As the Baby Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way.

For those between the ages of 62 and 70, you have the opportunity to begin claiming your Social Security benefits, whether you were planning to or not. This “safety net” of sorts could be an appealing opportunity to replace the income you may have lost due to an unexpected event, but this is a decision that shouldn’t be taken lightly.

In 2019, the average monthly social security benefit for retired workers was $1,471.¹ Whether this amount seems like a lot or a little will depend on your current income.

Since there is no exact timeline on how long we will live or what our future may hold, it’s understandable to have questions and concerns about the road ahead. 

When it comes to making a decision surrounding where you will spend your retirement, the options are seemingly endless. Whether you enjoy the coast or have imagined relaxing in the mountains with only the concern of which hike to conquer that day, deciding where and how to spend your retirement years should be exciting.

Passive income is money earned in a way that doesn’t require much active effort, traditionally through investments or stake in a business. Active income, on the other hand, requires trading your time and participation or service for income.