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Your retirement years are a chance to try new things. Travel, hobbies, or just a chance to relax are all available to you now in your golden years. However, though you’ll have the chance to see Rome or finally build that hot rod you’ve always dreamed of, you’ll want to make sure you’re smartly and efficiently managing your finances. Here are some helpful tips to keep in mind for getting a handle on your money in retirement.
Make and Maintain a Budget
You’ve probably been doing some form of this your whole life, but budgeting for retirement is a drastically different process. For one, you’re on a very fixed income and operating without a paycheck. You’ll be receiving a social security stipend, but the monthly check will only stretch so far. In 2017, the average social security payment was $1,413, which comes out to roughly $350 per week. With this in mind, you’ll want to stick closely to any spending plan you develop to keep from running through your savings.
Start by establishing a month-by-month budget based off expenses like liquid assets or medical costs, and then plan to start the next month with that figure in your primary checking. Also, keep in mind that your primary focus of spending should be on yourself. As your family grows and you spend more time with your children, grandchildren, nieces, and nephews, it can be tempting to shower them with gifts. However, your finances should always be centered around keeping your retirement afloat.
Automate Bills and Finances
Technological leaps have made it easy for anyone to get a handle on their savings, regardless of what computer or smartphone skill level they are. There are several apps and online services that will allow you to automate your savings and spending to ensure you’re being efficient and careful with that cash.
This wildly popular app allows you to link all your finances and accounts in one place, and then set up automatic or manual scheduled payments on bills. There’s also a feature that allows you to create personalized budgets that let you see where you’re spending your money, in real time. Additionally, it’s totally secure and made by the brilliant minds behind TurboTax, so you can rest easy knowing that your money is safe.
This intriguing program is designed to help you keep track of or even change your spending behavior. The app allows you to set “rules” to trigger a withdrawal from your checking and transfer into your savings. For instance, if you’re worried about spending too much on coffee, you can create a rule that automatically transfers money out of checking into savings, thus encouraging you to spend less at the local Starbucks.
Acorns helps you further your portfolio by rounding up your debit payments to the nearest dollar, and then transferring those few pennies into your investment account. It may not seem like much, but millions of people use it to help diversify and further their income without having to make a large lump investment.
Finding More Liquidity
Managing your money in retirement means looking for smart ways to inject cashflow into your savings at any turn, and though it may surprise you, that life insurance policy you have might just be the best hidden source. This is called a life settlement, and through this process you can sell all or a portion of your policy for an amount greater than the cash surrender value. You can find more about life settlements and other helpful tips for seniors answering questions like, “What is a viatical settlement?” on the Life Settlement Advisors blog.
As a senior citizen, your retirement years are a time for relaxation and exploration. To do so, however, you’ll want to be certain you’re financially stable and managing your assets responsibly. If you’re looking to boost your income or add to your savings, the pros at Life Settlement Advisors have you covered. Contact us today to learn more!
Case Study:
Virginia has been a widow for many years and living alone has worked well for her until recently as her health has continued to decline. Her family has encouraged her to consider assisted living, but Virginia has decided to stay put. Virginia sold her life insurance policy for $72,000 and used the proceeds to hire in home assistance.
Leo LaGrotte
317-863-5936
