Money Smart in Your 60s
In your 60’s, you have hopefully either retired or are getting close. Now is the time to enjoy life and (hopefully) worry less about finances. This is a great time to travel, pick up side income to supplement your retirement money...or both! Retirement can mean a lot of changes in your day-to-day activities, but also for budgeting and setting financial goals. That’s right—It’s never too late to set goals.
Why It’s Important
Making smart money moves after retirement is important because presumably, whatever funds you have for retirement are funds that need to last for the rest of your life. You may also be looking towards your family’s future rather than your own. It is also the time to explore new opportunities or revisit old hobbies. Your finances need to be in a position to help you through all of it.
How To Do It
Below are our top tips for conserving and supplementing your finances in your 60’s and throughout retirement:
We talked a little in the last article about getting a head start on downsizing, but now is the time to make the major downsizing moves. This includes moving to a smaller, more manageable home or apartment. Small homes mean smaller expenses not just in mortgage or rent, but also in utilities, maintenance, and cleaning costs. You can also consider drastically downsizing personal items and furniture to limit storage expenses. Rather than throwing out, see if relatives are interested in sentimental items, sell others to add funds to your savings, or donate.
2. Re-Do Your Budget.
In order to conserve retirement funds, your budget will likely need to change. Figure out how much money you can spend each month based on your retirement funds available and any supplemental income, such as social security, disability or pension income. Cut down any and all expenses you can. Downsizing should have helped, but you can also find savings in other ways too. Check to see if any of your service providers for cell or internet service, or even everyday utilities, have any discounts for seniors or retirees. Any amount you can cut, even a few dollars, adds up in the long run.
3. Set Your Goals.
You can still set financial goals in retirement. Maybe you want to travel more? Or maybe you want to help your family with their own financial goals? Decide what is important to you and what is realistic given your available retirement funds. You may need to re-vamp your budget even further or find a retirement side gig, but it is not too late to make financial moves.
4. Find A Job.
Many people choose to supplement their retirement income with a retirement job or income-earning hobby. Some retirees choose to find easier, part-time jobs for money with less stress than their prior employment. Others choose to make things or do odd jobs for extra cash. If you are a creative type, you could even write online articles about retirement, travel, cooking, or anything that excites you. Finding ways to supplement your retirement income is easier than ever with the internet. From job boards to online stores, the Internet is a convenient way to find your new hustle.
5. Talk To An Estate Planner.
While never an easy conversation now is the time to figure out how and to whom your property and assets will be distributed to family members. Estate planners or estate attorneys can help you figure out what you are leaving behind and prepare any documents needed to ensure your final wishes are met. Different states have different probate laws and procedures, as well as tax implications. The sooner you can talk to an expert, the less you will have to worry about it down the road.