Money can’t buy happiness but it sure helps. This common quote has more than a little truth to it. When preparing for the later years we all hope that we will have enough money to live comfortably, but, there are endless cautionary tales of people who go through their nest egg far too fast. There is no sure-fire way to insure your funds outlast your life however there are ways to stack the deck in your favor.
- Long term care insurance: Like Life or Health insurance, this is something that you should have no matter what and should buy well before you need it. For a relatively low-cost you pay into a fund that will pay out when you need home health care or assisted living. Rather then draining your assets long-term care insurance pays for the care you need to support your health and independence.
- Financial planning: Find a professional who can help you create the right savings and investment plan for you and your partner. A good planner will work with you to show what you need to do now to have $XX a month in future years. Obviously, the earlier the better to make a plan but it is never too late to get a professional advice on your situation.
- Budget and right size: When you get down to it, the less you spend the longer your money will last. Holding onto a house that is expensive might not be the most wise decision. Look into moving into a place that is the right size for you now. Moving in with family is an age-old option to save money and living with people keeps you feeling connected. Create a budget that works and sticking with it will help keep a positive cash flow as long as possible.
- Encore career: Working as long as possible is the best way to make your money last but if you are ready to leave the full-time world look into part-time work. Working keeps many people mentally active and happy brain plus income is a win win. Look for an encore career that makes you happy.
- Invest: Wise and prudent investment is always a staple of a finance plan. Work with an expert to have a diverse portfolio. Aim for a plan that gives you a monthly income that does not deplete your capital, if you can achieve that, your investments will keep you afloat for many years.
- Divest – “You can’t take it with you” is another common quote. If you have many assets that you want to pass on to your heirs do it early so you can see them enjoy it. Shift maintenance or tax burden away from you during the years you can least afford it, and, you are sure the asset is not a point of contention after you are gone.
- Delay social security – Read the rules of social security carefully to fully understand how waiting to receive your benefits will yield more per month. Do not delay past 70 and be sure to sign up for medicare on time because delays on that will cause penalties.
Careful planning and conservative living should keep you contented for a long life, go ahead and plan on living to 100!