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6 reasons to consider semi-retirement

By WTOP Staff

Retirement can be a jarring change, and many retirees endure a bout of loneliness when they leave their career. Very few people have saved so much for retirement that they couldn’t benefit from a little extra cash coming in through a part-time job or consulting work. But even if you saved and invested diligently for many years and are in a good financial position, there are still many reasons to consider semi-retirement. Here’s why many people prefer to ease into retirement rather than jump right in:

Work is fulfilling. Your job might be a drag after working in the same industry for 30 years, but most of us enjoy working and contributing to society. Work makes us feel useful, and it keeps us connected to the world. We live in a society that validates our existence through work, and it’s hard to break away from the convention. Semi-retirement is a good option because you can still contribute to society and see the positive impact from your effort, while also increasing the amount of time you have for leisure activities. If you don’t like working in the same field, you can always find something more fun to do.

Social life. A huge part of our social life is tied to work because we spend so much time in the office. Retirees spend much more time at home and usually lose contact with most former co-workers quickly. Working people are often very busy and can’t always spend much time with people who have left the company. Retirees who work part time can meet people and build a new social network so that they won’t feel so isolated.

Feed your passion. Retirement gives you more time to pursue your interests, and some people find a way to make money with their passion. If you know how to make and sell beautiful ukuleles, that’s a great way to generate income from your hobbies. Many retirees write a book, blog online or take on consulting work. Making some income doing work you enjoy is often the ideal retirement situation.

Keeping active. Unfortunately, many people take the path of least resistance in retirement. They watch a lot of TV and don’t get enough exercise. Working part time will keep your mind stimulated, and it will probably make you move around a little bit more and add some activity to your days. Many studies have shown that people who remain active and engaged are more likely to stave off memory loss and other age- related declines.

Give back. There can be a loss of knowledge when people retire completely. Retirees have a wealth of experience and expertise behind them that could help younger workers tremendously. It’s a shame to let those skills disappear. It would benefit society if retirees would give back by mentoring the next generation. Instead of retiring, retirees could consult part time or join a mentoring organization to help young folks get started.

Better finances. Semi- retirement allows you to generate some income and put off retirement account withdrawals. The longer you can delay claiming your Social Security benefit, the larger the checks will be. If your 401(k) and IRA accounts don’t contain enough cash to fund 30 years of retirement, putting off withdrawals will give your retirement savings a few more years to grow. You’ll also reduce the chance of depleting the fund because you’ll spend less time in retirement. Working part time for a few years can really stretch your retirement dollars.

Semi-retirement is a great option when you’re in your 50s and 60s. While you can’t work forever, working part time while your health permits has many physical, mental and financial benefits. A part-time job encourages you to be active and meet new people, and the financial benefit is great if your nest egg isn’t quite up to par. There will be plenty of time left for a full retirement when you can’t work anymore.

Joe Udo is a stay at home dad who blogs at Retire by 40.

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6 Alternatives to Traditional Retirement

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6 Reasons to Consider Semi-Retirement originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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