12 Things That Retirees Should Be Doing With Their Money Now
Money, money, and more money. Jerry McGuire said, “Show me the Money.” Retirement doesn’t mean the end of our finances. It doesn’t mean we need to stop budgeting, tracking expenses, or saving. Not all of us will be lucky enough to have an overflowing abundance of money, so you will still need to make smart decisions with your money in retirement.
Not all financial plans fit every one of us. It is time to look at some options for your money. Some people may be slightly more conservative because of that lack of a paycheck. A few people may have the opportunity to see more of the world. So here are just a few things you can do with your money when entering retirement.
1. Invest in Yourself
Benjamin Franklin said the best investment is an investment in yourself. That speaks volumes to the power of educating yourself, creating new things, and enhancing your life. It is not just about reading or taking classes; you could also invest in your health and friendships. All these things can help you live a more fruitful life while in retirement.
2. Start a Business
In retirement, people have more free time than ever. What could they do with this free time? Start a new business or get going on a side gig that could fill their time and pay them money. The initial investment may not be that high, but it is an excellent place to put some money to use.
These businesses could thrive, and if you get tired of them, you could sell them one day for a nice profit.
3. Continue to Invest Your Money
Many people retire in their 60s, leaving many years of life without a regular paycheck. Regularly investing your money can help make it last longer than expected. It can be easily done with index funds, dividend stocks, or even some Treasuries, which allow retirees a more conservative avenue to earn from their investments.
If you think you may not have enough money to last into your 80s or even 90s, then some regular investing can help sustain you much longer. The power of compounding interest continues to work as long as there is time.
4. Delaying Social Security
Most people can start taking Social Security at age 62 for a fraction of the amount. They can get full Social Security at 67 or delay it until age 70, when they will get up to 132% if you were born between 1943-1954. Delaying Social Security just means you will get more extensive checks when you finally retire. That is one way to allow your money to last a long time. Not everyone should take the delay, so it may be best to contact a financial planner to see your options.
5. Donations to Charity
As retirees, you could be flushed with a ton of cash. Many famous people like Warren Buffett have said they want to donate their wealth to charity. If you have the will and the ability, you can donate your time and money to charity. The time aspect gives you something to do, and the money allows many charities to help people around you.
There is always something you could be doing to help people around you. It may not be the monetary portion, but at least you have time or skills to donate.
6. Improve Life
Sitting at a desk job for five days a week for years on end may have made life unenjoyable. It could be worse, having backbreaking work for years. Now is a time to use some of that money to make life better.
You can invest your money into better food, exercise, travel experiences, and anything else to make life more enjoyable. Life could take you to the beaches of Florida, seeing many of the things you had wished to see in the past, or stepping foot into Business class on an airplane. Life doesn’t need to be terrible. You can make significant improvements with little money, as walking every day and enjoying the outdoors. So now is the time to improve your life for the better.
7. Pay Off Debt
As many retirees have worked long hours to reach retirement, one thing that could help out is paying off debt. Many people could still have a mortgage. It could be best to pay it off if you have available cash. The freedom of being debt-free is one of the best parts of financial freedom. You will no longer have to worry about those payments, which can allow more free cash each month.
8. Buy a Rental Property
If you have some spare cash, you could start to get into the property market. As the supply of houses has diminished, many younger folks are looking for places to stay. That could mean buying a house or renting one for their young families. It could be a prime time to get into property investments. The great thing is that you will have some monthly cash coming to you and diversification in your investments.
9. Keep Money in a 401K
Your 401K is a great place to have a retirement income. You can start withdrawing from it at age 59 and a half, but you could leave that money in there to continue to grow. If you continue to have income, you do not need to touch that 401K until you reach age 73. At age 73, you must take a Required Minimum Distribution (RMD). So let the money stay in there and keep growing. That just means more money for your retirement.
10. Grow a Garden
One fantastic way to save money is to grow your food. A simple garden with tomatoes, zucchini, and many other great vegetables or fruits can really save you at the grocery store. Inflation cannot touch the price of home-grown vegetables. So starting a garden can help you save and occupy your time. Have you ever thought if you had a green thumb, you could use your money to start your new garden and see if you have what it takes.
11. Remodel Home
Many people have been putting off renovations on their homes until they have the equity and time to enjoy them. Now, in retirement, you could have that time to enjoy a nice kitchen, a man cave, or anything else you would like to do to your home. My parents added a back balcony and closed up their porch to have a sunroom. Remodeling also helps to add value to your property with each new addition. It is a win-win.
12. Travel Some More
Many people have postponed their travel plans due to not enough vacation time or the money. It is time to see the world. You can adventure on cruise ships worldwide, like in Europe or even the Caribbean. Train trips are becoming a common place for retirees to take to the land and explore what countries have like The Ghan in Australia. Use your money to travel more. Life is not getting longer, so you might as well see more of the world.
Many Things To Do With Your Money
When you hit retirement, money will be one issue most people discuss. It could be that you may want to look at what you can do with your money, or how to make more. So here are some options on what to do with your money now.
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