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If you don’t have any money left in a retirement account, you’re not alone. according to Gallup40% of Americans do not have money in any type of retirement account.
Although putting money into a 401(k) plan or similar plan is the most common way to save money for retirement, it’s not the only way. For alternative ways to fund a retirement account, here’s what ChatGPT recommends.
Rethink Retirement
Retirement in the 60s is a traditional view of retirement, with comfort and full employment. However, you don’t need to conform to tradition. According to ChatGPT, another way to think about retirement is, “How can I achieve financial independence?”
This could mean working solely part-time, or earning money from a hobby so the work seems less demanding. If you don’t want to work, ChatGPT suggests adopting a lifestyle where you can live off your current savings.
Build Assets That Pay You Back
Another source of income for living is investment. ChatGPT recommends investing in avenues such as real estate, dividend stocks, exchange-traded funds (ETFs), bond ladders or certificates of deposit (CDs). Even if you aren’t able to buy another home, you can still rent out a portion of the house you live in as an Airbnb or for a long period of time.
If you decide to invest in the stock market, ChatGPT is said to automate your investments. This way, your money will grow over time, giving you more money to live on.
“Automate monthly contributions to a low-cost index fund portfolio (e.g. VTI, VXUS, BND),” ChatGPT said.
Reduce expenses for flexibility
Reducing your overhead costs may be something you can do right now that allows you to leave a full-time job.
According to ChatGPT, ways to do this include relocating to an area with a lower cost of living, living in an RV or tiny home, or cutting back on expenses like memberships, insurance and car loans. If you don’t have too many health problems right now, ChatGPT also said it’s important to prioritize preventive care now to stay in good shape.
According to ChatGPT, “Medical costs are often the biggest surprise in retirement.”
creative strategies
Although these suggestions from ChatGPT are more gradual plans over time, it also lists some other ways you can act faster if they apply to you. If you’re over 62 and own a home, Chatgpt said you can do a reverse mortgage to get cash quickly. However, you’ll have to repay that cash if you move out or sell the home.
If you know of people who want to retire, ChatGPT said you can move in with them. This way, you can share expenses and live together as well. You may be able to share a car and other high-priced items to reduce costs even further.
That said, be sure to assess your plans with a financial advisor before solidifying them.