Money is important, especially in the last part of life. It can provide great comfort—or great insecurity.
You reach retirement and the end or reduction of your income.
You’ve planned, saved, invested and you think you’re ready when a pandemic-fueled recession hits and stock market values plummet along with interest rates.
You might consider adding to your income or looking around for ways to cut costs during such insecure times.
If the time in lock-down has shown us anything, it’s the ability to spend less.
Here are a few places to look if you are searching to trim costs:
- If you have a mortgage, it might be time to investigate refinancing to either a shorter time period or just a lower rate.
- Do a thorough review of your insurances (health, homeowners, auto, umbrella, life, etc.). Look at the policies through the lens of how much risk you can take on vs. lay off to the insurance company.
- Take advantage of senior discounts where available. Don’t be shy in asking.
- Examine whether it’s time to downsize; there’s a lot of cost in maintaining a home.
Over the years, many clients have asked about moving to a lower tax locale. My reaction is always the same. You need to dig into some very important questions, for example:
- Where is your family living?
- What support system will you have in a new locale?
- Do you understand fully the true cost of living in a new location?
- Are the services and offerings important to you available wherever you might want to live? (medical, cultural, educational).
If you’re insecure about money, start by digging in to the outflows, paying careful attention to what you value most.
Cheers,
Michael
