One of the most important things that all retirees must think
about before retiring is how to ensure they will remain financially
stable once they stop working. After the retirement parties and
vacations, reality sets in.
By Eric Heckman
One of the most important things that all retirees must think about before retiring is how to ensure they will remain financially stable once they stop working. After the retirement parties and vacations, reality sets in. Retirees have more time on their hands to spend money frivolously and to do the things they’ve always wanted. For many, too much “financial freedom” can be frightening and cause more stress in a time that should be stress free.
In order to get the most out of this exciting, new time in your life, below are 10 tips to help you save after retirement.
1) Create a personal money management plan. Doing this will help you manage your fears and your money. If you aren’t sure exactly how to do this, invest in hiring an advisor who specializes in financial planning.
2) Take advantage of senior discounts. AARP offers many discounts on everything from airfare to wireless phones and restaurants. Your local grocery store may also offer discounts for seniors on entire purchases during certain days of the week.
3) Stop yourself from impulse purchases. Do you really need that sweater for your miniature Schnauzer? Do you really have to have those $500 Gucci shoes? If you can’t decide how much you really need something, take another lap around the mall, or better yet, go home. If you find that you really just can’t live without those items, get a second opinion from a friend or someone you trust and figure out how to budget it in.
4) Watch out for fraud and identity theft. Be wary of offers that sound too good to be true. Don’t just throw away printed personal information, instead shred it. DO NOT divulge personal and financial information to unsolicited e-mails or calls.
5) Research your prescription drug costs. Determine how beneficial it is to buy the Medicare-Approved Drug Discount Card. Find out what other discounts you can receive and try to buy generic versions of your medications.
6) Get discounts on insurance. If you are a “safe driver,” one who hasn’t had an accident in the past three years, a low mileage driver or a long-time customer, contact your insurance company for a discounted rate. To lower your home insurance premium by 5 percent, install burglar, fire and smoke alarms. To lower it even more, add sprinkler systems and alarms.
7) Evaluate long-term care insurance. Is it right for you? Talk this over with your family to decide if, given your medical and family history, you might really need it.
8) Consider part-time work. Are you really ready to stop working altogether? If not, consider a fun, low-stress job that won’t feel like real work.
9) Shop around. Before making big purchases, such as travel packages, home appliances, new cars, mattresses, etc., do your research. Research what current owners have to say about it (a good place to start is Consumer Reports). Then take your time pricing them online and in stores.
10) Hire a financial planner. Getting the help of a professional can help you make smart decisions with your investments and help you create your personal money management plan.
Remember, this is your time to enjoy the fruits of your labor. You have worked hard to reach this special time in your life. Experience new places and try new things. Just don’t go overboard. Once you run out of money it’s much harder to earn it back. Stick to your financial plan and continue to look for discounts. Share your knowledge with your friends and have them share their savings secrets with you.
Eric Heckman is president of Heckman Financial & Ins. Services, Inc. You can contact Eric at 297-9800.
