June 10, 2013

Finances And Retirement: 5 Ways To Manage Your Money After Retirement

Filed under: Boomer,Retirement — seniorlivingguide @ 8:54 pm

Courtesy of Dixie Somers [dixiesomers@gmail.com]

Hitting retirement is an important milestone in anyone’s life. However, you have to make sure that you have enough money to last you for the entirety of your retirement years. The last thing that you want to do is go back to work again when you are 80. What are some ways to manage your money after retirement to ensure that you always have enough money on hand?

1) Hold Off On The IRA Distributions
You don’t have to take IRA distributions until you are 70.5 years of age. This means that you can let that money continue to grow and accrue interest for a few years after retirement assuming that you retire at age 65. Waiting five years to start withdrawing could add thousands to your IRA.

Finances after Retirement2) Continue To Invest
Never stop investing regardless of how old you are. If you have been saving all of your life, leaving a small percentage of your portfolio in the market can net you an extra few thousand dollars of tax-advantaged income each year.

3) Diversify Your Investments
Don’t leave all of your money in the stock market. Some alternates to stocks and bonds include gold and real estate. Those are investments that will continue to grow no matter how old you are.

4) Don’t Take On Too Much Debt
It is alright to buy a car or take a trip around the world after you finish working. However, don’t get a mortgage for a $500,000 house unless you have the money available already. Taking on new debt is the easiest way to drain your retirement savings within a few years. If you are going on vacation, visit site of a good travel agent to ensure that you get the best deal on a vacation package.

5) Know Where You Will Get Health Care From
Health care can be expensive if you are over the age of 65. The good news is that the government will pay for a majority of it. If you don’t want Medicare, look for an inexpensive private plan or get your coverage from the military if you have previously served.

Retirement is something that all workers strive for. To get there, you need to work hard and plan well. If you can do that, there is no reason why you shouldn’t have enough money to live regardless of how many years you have after your retirement.

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