Investing during retirement is different than investing for retirement. In investing during retirement seniors need to weigh and measure several different factors to assure that their money last for all necessities, and if they want to leave some money to your children or grandchildren. A senior citizens retirement nest egg must be well thought out and closely monitored. 1. Life expectancy
Calculate what you feel your life expectancy is considering how long your parents lived and your current health status is. 2. Inflation rate
Know what the current rate of inflation is and what the continuing rate of inflation will be. This will chip away at your fixed income. 3. Taxes
Know how much you will have to pay in taxes and how your income will be taxed. This is the largest expense you will have if you are subject to income and homeowners tax. 4. Health Cost
Know if your health cost will be covered, and if not, how much will you have to pay toward your health cost? Will you be covered by Medicare or a private health insurance, and what will your out-of-pocket cost be. 5. Low risk investing
What are the best low risk investments you can put your money into for safety and convenience. Be careful, some retirees loose their entire nest egg because some slick financial advisor talks them into a so-called high interest investment, which is also high risk investment. Investing is over during retirement. All investments should be very low risk income investing. If you don't understand investments, put your money in savings accounts or money market accounts. 6. Rent or own home
Will you rent during retirement or live in a house that is paid for but has yearly taxes, electrical, water, and maintenance cost. Sometimes it is better to sell your home, live off the proceeds and rent a low income senior apartment, which can also be a safer place to live. 7. Debts paid off
Will you have all of your debts paid off. This can save you mountains of money in unnecessary interest charges, which are very costly. 8. Retirement recreation
What do you want to do during retirement? Are you content to stay home and garden, sew, cook, and talk with other retired neighbors? Or do you want to travel. You need to figure the amount it will cost you to travel or practice hobbies. 9. Education and trust
Educate yourself about your investments and the retirement income you will receive. Know exactly how much you have coming, how much you can get on a monthly basis, and how long you can make it last considering all of the above. Don't trust strangers to advise you about your retirement money unless you have first educated yourself and verified that they, and their business is honest. Again, many seniors loose their nest egg to dishonest businesses and/or their dishonest advisors. |
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