If you’re one of the savvy few who has managed to make it to that coveted plateau that most people strive a lifetime to reach, it’s vital to find strategies that make the most of the money you’ve saved. For many retirees, the fear of running out of money is their greatest worry. They don’t know how to stretch their Social Security benefit to pay all their bills, or they are uncertain about how often, or how much, they can dip into their individual retirement account or other retirement savings.
Check out these four easy steps that stretch your retirement budget and hopefully save you some extra money for retirement!
- Consider Annuities. After retirement, holding onto what money you have, becomes even more important, meaning that for most people, this isn’t the time to indulge in high-risk investments. Make an appointment to go over your current portfolio and consider moving any funds wrapped up in risky investments to something safer such as fixed annuities. With a fixed annuity, your principal investment is guaranteed. And if you mix immediate and deferred annuities, you can receive payouts on portions of your money while the rest collects interest. Now that’s making your money work for you.
- Reduce Spending and Streamline Your Expenses. Good advice at any age, this suggestion takes on new importance after retirement. This is the time to consider downsizing your home or moving to a less-expensive neighborhood. Looking to see where you can cut those extra expenses that maybe aren’t so necessary anymore. Most retirees look into traveling with their extra time, so you won’t be home as often. Re-evaluate your in-home perks: TV channels, streaming networks, home deliveries, etc. You might also want to take a second look at life insurance payments. If providing for dependents after your death is no longer a necessity, cutting back on coverage could free up quite a bit of cash.
- Trade-Up on Credit Cards. Take a look at the perks offered by your credit card companies and ditch any cards that don’t fit your needs. For instance, if you’re not a frequent flyer, that card that gives you airline miles might not be as beneficial as one that offers cash-back on qualifying purchases. The 1st Financial Visa Signature Rewards Credit Card puts exceptional earning power in the palm of your hand, so you can reward yourself and indulge in your passions. You decide where you want your points to go!
- Be a Savvy Consumer. Now is the time to take advantage of off-peak entertainment. Hotels and campgrounds offer lower rates during off-peak times, so does your local golf course, and the movie theater down the street. Taking in matinees, traveling out-of-season and catching the lunch buffet instead of dinner will all help you stretch your limited retirement budget accordingly. You can also eat dinner during happy hour or even earned the perk of using a senior citizen discount. All those things you couldn’t do because of your 9-5 job, now you can do whenever you want. You’ve earned it, so take advantage of all the perks.
Take a serious look at your life and review any changes you can make from your working life. Sure, once you retire, you won’t need a professional wardrobe, and you might not go out for lunch as often—but then again, you might. In fact, the more time you have on your hands, the more likely you are to fill that time with activities that increase spending. So, budgeting properly and being savvy with your newly limited income can help provide additional confidence and financial security.
You can do it,