10 Ideas for Managing Your Retirement Budget

Retirement

10 Ideas for Managing Your Retirement Budget

Posted by Infinite Wealth Advisors, LLC
8 months ago | February 7, 2022

With lifespans growing longer, many of us will enjoy a longer retirement. But we must all worry about the longevity of our retirement savings, too. Will your savings last for the rest of your life? And are there ways to strategize both your withdrawals and spending to hopefully make that happen?

Yes, if you’re careful. Consider these ten ideas for stretching your retirement budget so that your savings will last longer.

Try a budget app. It’s just too easy to decide on a budget in your mind, but then become distracted and overlook it. Download a budget app on your phone, and you can keep daily tabs on where your money is going.

Consider a new home. Selling your old home and downsizing can be a wise move in retirement. A smaller house often equals a smaller payment, and you will spend less on maintenance, taxes, and utilities too.

While you’re at it… Consider a new location. Why stay in the same, high-cost city when you can now live anywhere in the world? If you choose a location with a lower cost of living, you will enjoy a much roomier budget.

Downsize your vehicles, too. Most retired couples find that they can function just fine with one vehicle. Not only will you shave a payment off of your monthly budget; you will save on taxes and maintenance as well.

Consolidate your debt. The best plan is to enter retirement without credit card debts, but that isn’t possible for everyone. The next best plan is to consolidate them into one, low-interest loan, and get those balances paid off for good.

Consider secondhand shopping. Most items can be purchased secondhand at steep discounts. Try shopping at thrift stores and yard sales, or on Facebook Marketplace. As a bonus, the hunt for good deals can be a lot of fun!

Travel wisely. You’re no longer stuck scheduling trips around work and school schedules. This frees you up to travel in the off season, and there are great deals to be had at this time.

Inquire about senior discounts. Remember to ask about discounts everywhere that you spend money. These deals aren’t always advertised, but you might be surprised at how much money you can save by asking a simple question.

Research your Medicare plan options. For some, a Medicare Advantage plan is a better deal than Original Medicare, because it can help you manage your expenses. Research all of your healthcare options and use your plan wisely.

Manage your sequence of returns risk. Timing your retirement account withdrawals correctly is important, because you can lose the opportunity for rebounds when the market suffers losses. Work with your financial advisor to hedge against this risk.

Speaking of retirement plan withdrawals, contact us as you plan for retirement. We can help you understand how timing matters with regard to distributions, and help you devise a strategy to live on your retirement budget.

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