Jun 14, 2024
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
One surprise that hits retirees in their first few years is that even without the costs of working and contributing to retirement accounts, they end up spending more than when they held down a job.
Some financial planners cite three retirement phases: Go-Go, Slow-Go and No-Go. In the Go-Go years, typically 65 to 75, healthy young retirees spend big on scratching life-long dreams off their bucket list — and often make big purchases that they may end up regretting.
According to AARP, some of the top spending regrets retirees are likely to have include expensive trips, upsizing to their dream house, purchasing fancy cars, boat or RV and some impulse online shopping.
These potential regrets aside, you shouldn’t have to be scared to spend money during your golden years. Here are three ways you can prepare your finances for retirement and still make some of those dream purchases.
The golden ticket to your golden years
The U.S. The Bureau of Labor Statistics reports that the annual inflation rate increased by 3.3% in May compared to the same time last year. With the economy still on shaky ground, your 401(k) or IRA — and your retirement itself — could be at risk.
A Gold IRA is a great alternative to protect and grow your nest egg. Unlike the U.S. dollar, which has lost 87% of its purchasing power since 1971, gold’s value has increased over the last few years.
Goldco can help you safeguard your nest egg by rolling over your retirement account into a gold IRA. This lets you combine the tax advantages of an IRA with the inflation-hedging properties of gold.
By opening a Gold IRA with the help of Goldco, you’re looking out for your future self and helping to secure your retirement fund. While inflation has increased everyone’s expenses, investing in precious metals can help to diversify your portfolio and stabilize your finances.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Shop around for better insurance rates
It’s not uncommon for people to take what they’re given when it comes to insurance rates. But with so many retirees buying their dream homes and cars, making sure you’re not wasting money on overpriced insurance is essential.
According to data from Forbes, the national average cost for full-coverage car insurance is currently $2,150 per year, or $179 per month.
But, depending on which state you live in, your driving history and the make and model of your car, you can save up to $820 a year.
Luckily, BestMoney.com makes it easier for you to comparison-shop instantly. BestMoney is an online platform that compares car insurance quotes from multiple companies and narrows down the best rates in your area.
After providing some information about yourself and driving history, BestMoney will consolidate your top offers all in one place, so you can get a quote in minutes that maximizes both coverage and affordability.
And saving doesn’t need to stop there. Home insurance is another necessary bill you can look at to try and trim your monthly expenses.
OfficialHomeInsurance is a platform where you can compare the best home insurance rates in your area. All you need to do is answer some quick questions about yourself and they’ll instantly sort through leading insurers to find you the best deals available.
Get professional help with your retirement plan
If you have big plans for retirement but feel overwhelmed about the financial choices you have to make to make them happen, consider speaking to a financial adviser who specializes in retirement planning.
Vanguard — an investment management company — offers hybrid advisory services to help you reach your unique financial goals.
Their team of professional advisers are all fiduciaries, which means they won’t earn a commission on their recommendations, and can provide you with unbiased financial guidance.
Vanguard’s team of professionals will schedule you an appointment to refine your goals, set up an investment portfolio with their own ETF and manage it based on your risk tolerance and needs.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
