We definitely want you to enjoy your retirement years. At the same time, living on a fixed income can be challenging for many people. And the last thing you want is to run out of savings too early. So watch out for these ten common money traps. They catch more retirees than you might think!
Carrying too much debt. Credit card interest is a huge waste of money at any age. It’s worth it to delay retirement a bit, if it means you can go into it debt-free.
Owning multiple cars. Now that you and your spouse have stopped working, do you really need the expense of two car payments, insurance on two cars, and maintenance on two vehicles? Probably not.
Keeping the big house. Now that you can live anywhere you want, why hang onto the oversized family home? Downsizing into something more affordable, at a preferable location, can save you money on a house payment, repairs, taxes, and more.
Neglecting your health. For many retirees, healthcare is the biggest expenditure over time. You can save a lot of money by following a healthy diet, exercising at a reasonable level, and avoiding habits like alcohol and cigarettes.
Forgetting to ask for discounts. You’d be surprised at the number of businesses that offer discounts to retirees. But if you don’t ask at each place you spend money, you won’t know about them!
Supporting adult children. If an adult child needs help in an emergency, make sure you come to a solid agreement on the terms of a loan (not a gift, unless you can really afford it). If they need to live with you for a while, set up a rent arrangement.
Shopping as a pastime. Rather than shopping, adopt a hobby that you enjoy. A one-time investment in equipment or supplies is probably a much better deal.
Buying the wrong types of insurance. Insurance can be a huge waste if you choose the wrong types of policies. Let’s consult about which forms of insurance you do need.
High investment fees. Investment fees typically run about one to two percent of your overall investment. That doesn’t sound like much, but keep in mind that’s $10,000 to $20,000 dollars annually if you’ve invested one million dollars. Make sure the service you receive matches what you’re paying in fees.
Financial scams. Remember that anyone calling or emailing you about a get-rich-quick scheme is likely to be a con artist. Always consult with us before making any big decisions with your money.