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6 Tips to Manage Your Money During Retirement


You’ve done it.  You’ve worked hard, saved lots, and made your way to retirement.  It’s time to reap the benefits of the financial accomplishments you’ve made thanks to your umpteen years in the workforce – but, not without a little calculated financial intelligence.  Contrary to what many may think, money management during retirement is equally as important as when you were employed.  We often place too much emphasis on becoming retired, as opposed to being retired.

Here are a few practical tips to help you plan ahead financially and manage your savings as you enjoy your retirement years.

1 – Create new goals.  Whether you are a young adult, an older adult or a senior, having clear-cut financial objectives is important.  As a retired senior, it’s time to reevaluate your financial plan to compare past objectives to current needs.  Create new feasible and attainable goals that fit into your retired lifestyle.  Smart goals = well managed finances = happy retirement.

2 – Gradually alter financial investment plans.  You may find that once you are a retired senior, your thoughts on what constitutes an “appropriate” investment vehicle, change.  This is normal.  Be careful you don’t become overly conservative or too frivolous.  Whether your investment platform of choice is a stock, bond, tax-free savings account, real estate purchase or a combination of many, make new choices slowly.  Be sure you understand particular investment products and what they can offer you.  Discuss your interests with a financial planner for seniors, who can help you determine the best plan of action with the perfect balance of risk and security in your portfolio.

3 – Create a budget…and stick to it.  When you’re not regulated by a work schedule and you feel as though every day in your retirement is one to be remembered with big spending and worthwhile experiences, it’s easy to drift out of line.  Remember, you want to enjoy all of your retired years – not live in poverty after the first few.  Make a budget for yourself.  Your new budget will look different from those you made in the past.  If you’ve saved up for travel, home purchases or large-scale renovations, then be sure to accommodate these expenses into your retirement budget so that you still have a plan, but a realistic one.

4 – Establish a smart withdrawal schedule.  Whether you have your money in a retirement savings account, stocks, mutual funds or bonds, it is important that you make regular withdrawals in increments that make sense.  If you withdraw too much too fast, you’re left with nothing in your later senior years, and yet if you don’t withdraw enough, you may not be treating yourself to the retirement you’ve earned.  It’s time to make the most of what you have.  If you need assistance, a financial advisor can help you create a schedule that meets your needs both now and in the future.

5 – Involve your family members.  It is wise to incorporate your family into your financial plan during retirement.  For example, perhaps you are retired but your spouse is not.  Or maybe both of you are retired but you share slightly different views when it comes to investing, saving and spending.  In order to ensure the best results, your financial retirement plan must be one that you agree on.  As you create your budget, decide on investments, and determine an appropriate withdrawal schedule, discuss the different options with your family.  When everyone is onboard, your plan is easier to follow.

6 – Consider a part time job.  Many seniors and older adults reenter the workforce after retirement.  Jobs for seniors are more readily available than ever before and for many older adults, employment during their senior years is something they value and enjoy.  From a financial perspective, work during retirement increases your cash flow and makes it easier to manage your money – not to mention the fact that it allows for some extra fun on the side.

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