Personal Finance Issues After Retirement
Age brings about a number of new expenses. Expenses keep on increasing as the years keep growing. Old age merely brings about a rise in a number of expenses. Visits to the doctor have to be made. Medicines need to be bought. And there are so many more bills. However, even as expenses keep on multiplying, the income with which these bills can be paid remains stagnant. Post-retirement, one has to be dependent on one's pension and on the monies that accrue from the various investments that one has secured for oneself. Given these sources of income, it does become difficult to pay for the expenses of daily life.
However, with a little bit of research and some application, one can use the mechanisms of personal finance to add quality to life post retirement. For starters, let us take the case of bank accounts. Now, there are various kinds of bank accounts that people can apply for. But which bank account would be a good choice if one has just retired? Ideally, one should be looking at a bank account that offers a high rate of interest. High interest savings accounts are a dime a dozen these days. Joint bank accounts are worth looking at. Elderly couples often pool their monies together and start a joint account, thus, earning higher interest amounts on a regular basis. Just check with the bank that is nearest to you. Moreover, senior citizens are eligible for some other offers that cater specifically to their needs. So anyone who falls into this age group need to be on the lookout for deals like this.
Credit cards are often the knight in shining armor for aged people. After retirement, a lot of people find it difficult to carry on with their earlier standards of living. Thus, many end up running up their credit card debt as they pay for various recurring expenses, with medicines being one of the recurring ones. Now, credit card debt cannot be run away from. It had to be settled in the near future. However, senior citizens can approach their credit card providers and try to negotiate a reduction in debt. Many a provider is eager to comply with such requests.
Naturally, leaning on the credit card is not the smartest financial advice that you can get. All the same, you can certainly use the credit card judiciously and let it help you when you are in dire need. For that purpose, you must make sure that you are not splurging on any goods and services that are not really required. Of course, it can be argued that every thing is "required. But that is not the way a smart consumer thinks.
Of course, sometimes cash advances and credit card payments are not sufficient. Turning to loans can be quite costly for people who do not have a fixed salary. Things are simpler for people who own property for a secured loan is usually cheaper. However, nowadays, cheap unsecured loans are not such a faraway dream either.
Planning Food Cost For Retirement-How To Achieve The Money You Need To Retire Comfortably On.
Many people forget during their retirement planning to plan for each and every expense that will arise during their retirement. This is exactly the reason the vast majority of Americans get to their retirement years and find they dont have enough money to retire on.
According to the Social security administration, 95 of people will not be able to retire comfortably. Unfortunately, this stat could have been alleviated by most people from some simple and thorough planning for the costs they will be faced with after retirement.
Of course, food cost is one of the biggies that most people overlook when planning this important stage. Most people get so caught up in planning for their housing, cars, and other larger expenses, they forget about this everyday, seemingly trivial expenses. Obviously, as Im sure you are aware of now, food costs can really add up if youre not careful.
In planning for these food costs for retirement, first of all, sit down and figure out exactly what you spend on food every week now. Now figure out how much that figure is per month, and then per year. You should already be doing this process now in keeping track of your expenses, and most people do a very poor job of tracking their expenses before retirement as well. However, thats another story for another day.
Once youve gotten this figured out, now simply multiply that number by about 25 or 30 (usually safe) and youve got about how much money you will need for your food expenses when you retire. Of course, this number isnt perfect, depending on how long you live once you retire. Obviously, you dont know this, so you have to at least do what you can.
Once you know this, thats great, but you also have to take into consideration your other expenses as well. In your retirement planning process, every expense must be accounted for; without this clarity, you can never achieve your retirement goals, whatever they may be. Unfortunately, its this same lack of clarity that stops most people from having enough money when they retire.
In this process, there is a lot of great retirement planning software that will make this stage much easier. Also, you might try doing a quick internet search for retirement planning calculator, and you will get up literally millions of results. There are many financial companies that will offer you these calculators for free so that you use them and hopefully get hooked on ultimately hiring that company and their services. Whether you do this or not, you can certainly still benefit from the free software available.
Now, once you know this info, you need to figure out how you plan on getting that money to live on. For most people, this will be achieved thought the stock market, whether it be mutual funds, savings bonds, foreign currency exchange, futures, or regular stock investing.
Of course, you can also invest in real estate and other assets as well. If you arent financially educated and dont know how to tell a good investment from a bad one, youll either want to read books and educate yourself, or hire a financial advisor to tell you the best investments to put your money into. Obviously, becoming financially educated yourself is certainly preferably, because you will have the opportunity to spot investment opportunities on your own.
Remember, nobody else will ever care as much about your financial situation as you, so being able to do this is invaluable. However, the most important part at this state is to either use your own or somebody elses expertise to help you find the top investment vehicle to help you achieve your goals.
Once youve done these planning food cost for retirement and other expenses steps, and decided on the right investment vehicle to get you there, you are well on your way to achieving your goals. Now its simply time to take action.
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