There was a time, when people approaching their sixties would dread the thought of retirement. How would it be possible to maintain the same lifestyle, without a steady flow of regular income? The answer to that horrifying question is simple Individual Retirement Accounts. For example, IRA services provided by Charles Schwab ensures that you’ll get personal investment guidance and great tools and resources—all with no account service fees. One must plan his retirement early in life or as they say, during the “sunny days”. In this article today we take a look at the most popular ways to save money post retirement;
- The Individual Retirement Account: Be it then or now, IRAs win hands down. Based on whether you choose to go with the Traditional IRAs or a Roth IRA you can enjoy tax benefits by making contributions here. So even when you retire, IRAs ensure that between ‘death and taxes’ there is one, from whom you can escape safely.
- Higher rate of interests enjoyed: Banks and other financial institutions often offer higher rates of interests to the retired senior citizens. So if you were saving $1000 at 50, your return after a year would be a sum of $1050; if you save the same amount at 60 you get back $1100 after a year.
- Lower medical bills: Ideally. As you grow older your medical expenses should multiply. There are certain places however, where treatment to the retired elderly are done at a reduced rate.
- Lessen the shimmer: Research shows that a majority of your earnings is invested in maintaining your look and clothes. With no offices to go to, once you have retired, no need to spend hundreds of dollars on those items. Save that sum and instead prioritize your requirements judiciously.
- Forget Insurance and loans: So you have houses and cars, which you bought on loan at 30 and have been replaying the amount all your life? And added to that you also had to take insurance coverage? In all likelihood by the time you retire, you have probably washed your hands off these.
- The Annual Gas Contract: Once you have retired, you don’t really need to drive that fancy sedan to work. You may be thinking that driving to work cost you only about $20 everyday. But think of it as an annual figure and you will realize, what a lump sum of money you save post retirement. Alternatively, start taking strolls and walk
- Frugal Living: So your youth is gone and there is no reason why you need to live king size in a French Chateau. Restricting your living area to smaller houses not only saves you the burden of paying higher taxes but also is easier to maintain.
- Healthy eating and lesser fine dining: Keeping in mind that while working you probably had a larger social circle, it is likely that the circle will lessen post retirement. So do away with those fine dining places, which cost you a bomb shell and concentrate more on dining at home.
- Relocating: Ever considered taking up challenges post retirement? If yes, then leave the hustle of city life and relocate to a countryside or residential area. Not only will it bring down your living expenses, but also instill a sense of communal belonging, often missing in cities.
- Save something: It is likely that when you were working, you were covered under the company’s pension scheme. Once retired, this is a ready source of income. Consider saving a portion of this amount instead of spending it all.
Retirement can be a fun activity if planned in advance, meticulously. These real money sparing tips help you through the thick and thin of retirement!