Inflation Proofing Your Retirement Plan
You thought you were doing everything rate, saving at least five percent of your income in a savings account, maximizing your employer-matched retirement contributions, and saving up for in-state university tuition for your children. Now that you are getting closer to retirement age, inflation is the highest it has been in decades, and the monthly retirement income you had budgeted for does not go nearly as far as you had hoped and expected. While it is impossible to tell when prices will become more affordable again, there are some steps you can take to increase your income and reduce your expenses, even if you are past the age when taking on additional gigs is a feasible option. A Tampa estate planning attorney can help you strategize about your retirement finances in these tough economic conditions.
Build a Ladder With Your CD Investments
If you have already started investing in CDS, then you are off to a good start, since they have a guaranteed return on investment, as long as you do not withdraw funds before the maturity date of the CD. The best way to make money by investing in CDs is to invest relatively modest amounts of money in several CDs with different maturity dates. When one CD reaches maturity, reinvest it, including as much of the interest as you can afford not to spend, in another CD.
Reduce Your Family’s Housing Expenses
These days, the price of renting a house or apartment is astronomical, and so are mortgage interest rates. Buying an adorable empty nest is beyond most people’s budgets, unless your current residence is already paid off and the new place you have in mind costs so little that you can afford to buy it in cash. If you are still living in the house where you raised your children, and if your monthly mortgage payment is affordable, it is best to stay. You can offset the cost by renting out rooms, if possible. Another possible solution is to have your adult children move back home, especially if you have been subsidizing their rent.
Capitalize on Senior Discounts and Freebies
You traded in your daily Starbucks coffee for a Keurig machine years ago, but saving on the little things is still a sound strategy as you approach retirement age. Plenty of meals and activities are available to seniors free or at a reduced cost. If you are new to this sort of bargain hunting, the AARP newsletter, which you have probably been receiving since you were so young that you were indignant to receive it, is full of inspirations about all the fun that seniors can have on a shoestring budget.
Contact David Toback With Questions About Preparing for the Boomer Apocalypse
A Central Florida estate planning lawyer can help you reduce your expenses and increase your income to cope with economic hardships that appear to be sticking around for a while. Contact David Toback in Tampa, Florida to set up a consultation.