Retirement has finally come, so now you have the time to relax and make memories with family and friends. Although, it’s important to prepare your finances for retirement, so it can be a stress free time. No one wants to become a financial burden to their family.
What to Avoid?
We provide the financial tips to have a peaceful retirement without the worries of money.
1. Avoid Debt:
Americans are some of the biggest spenders in the world, which causes a lot of seniors to bring debt into retirement. Interest can add up on unpaid credit cards and loans being a “silent killer” Making ends meet is already hard enough with healthcare expenses, so unpaid debt doesn’t need to be added to the mix.
This mistake can be prevented by overseeing your finances five years before going into retirement. It’s important to asses unpaid debts and all other spending costs. Three years before retirement pay off the big items with high interest and large monthly payments, such as a house or car.
2. Don’t purchase a Second Home:
It’s a smart move to downsize to a smaller home, but purchasing a second home can be risky. It’s thought that homes always go up in value, but that isn’t always the case. The housing market crashed in the mid-2000’s wiping out people’s retirement funds.
In retirement you’re not working, so new income isn’t coming in. Home ownership brings mandatory fees and property taxes that have the potential of rising in cost every year. The typical home improvement costs or normal wear and tear on a house can cost a lot of extra money, draining your retirement fund.
3. No More Handing Out Free Money:
It’s hard to say no to your children when they ask for help with money. We all want our children to succeed and do well. At times your children can go through challenges, in which they need to be bailed out financially. Although, your 40’s and 50’s are essential for saving up money for retirement. Giving a large amount of money to your children can wreak havoc on your retirement fund.
Additionally, if you are already in retirement a handout of $5,000 can dramatically affect your monthly and yearly income. You can help your child by offering advice for loans or an alternative method, so your financial future isn’t at risk. It’s a sad fact but enabling your children can endanger your retirement dramatically.
Fairmont Grand Senior Living Community in Rapid City, SD
Fairmont Grand is a resident centered senior living and memory care facility in Rapid City, SD. Our goal is to create an environment where resident well-being is at the heart of everything we do.
Our wide range of services are designed to meet you or your loved one’s daily needs. We offer restaurant style dining options, a variety of physical activities, and give residents the opportunity to live as independently as possible.