Retirement has finally come, so now you have the time to relax and make memories with family and friends. It’s important to prepare your finances for retirement, so it can be a stress free time. No one wants to become a financial burden to their family.
What Mistakes to Avoid?
Retirement is the time to finally relax and enjoy the better things in life. Although, it’s important during this time to manage your assets. Managing your retirement fund is a beneficial way to make sure your money lasts longer.
Learn more about what financial tips use for a peaceful retirement without the worries of money:
Don’t Go Into Debt:
Americans are some of the biggest spenders in the world causing a lot of seniors to bring debt into retirement. Interest can add up on unpaid credit cards and loans being a “silent killer” Making ends meet is already hard enough with healthcare expenses, unpaid debt doesn’t need to be added to the mix.
This mistake can be prevented by overlooking your finances five years before going into retirement. It’s important to asses unpaid debts and all other spending costs. Three years before retirement pay off big items with high interest and large monthly payments, such as a house or car.
- Avoid unpaid credit card bills and loans
- Pay off big items three years before retirement
Be Careful in Purchasing a Second Home:
It’s a smart move to downsize to a smaller home, but purchasing a second home can be risky. It is thought that homes always go up in value, but that isn’t always the case. The housing market crashed in the mid-2000s wiping out people’s retirement funds.
In retirement you’re not working, so new income isn’t coming in. Home ownership brings mandatory fees and property taxes that have the potential of rising in cost. The typical home improvement costs or normal wear and tear on a house can cost a lot of extra money, draining your retirement fund.
- It’s smart to downsize to a smaller home
- Purchasing a second home can be risky
Don’t Hand out Free Money:
It’s hard to say no to your children when they ask for help with money. We all want our children to succeed and do well. At times your children can go through challenges, in which they need to be bailed out financially. Although, your 40s and 50s are essential for saving for retirement. Giving a large amount of money to your children can wreak havoc on your retirement fund.
Additionally, if you are already in retirement a handout of $5,000 can dramatically affect your monthly and yearly income. You can help your child by offering advice for loans or an alternative method, so your financial future isn’t at risk. It’s a sad fact but enabling your children can endanger your retirement.
- Handing out large sums of money can damage your retirement fund
- Don’t let it affect your monthly and yearly income
The Victorian Assisted Living and Retirement Community
The Victorian is an assisted living and retirement community that makes living independently, while at the same time feeling safe and secure, a reality. We strive to provide the best quality of life for all residents including those suffering from loneliness and depression.
We offer a comprehensive activity program that includes both physical and social activities to encourage emotional well-being. Our staff is trained to assist those with depression. If you or a loved one are considering assisted living, contact The Victorian today to learn more about our services or tour our community.
