Forget what you’ve heard about living until you’re 100 because it’s not as unusual as it sounds. We’re all living a lot longer thanks to technology—turning three digits is a real possibility! To do so, you need to get smart with your money. Here are ten ways to do just that.
Featured Image Credit: AllaSerebrina /Depositphotos.com.
Wait a Bit Before Grabbing Social Security
Even though claiming Social Security benefits at 62 might seem tempting, playing the waiting game until you’re 70 can really pay off. You’ll give your monthly checks a nice increase every so often—it’s like getting a raise just for being patient. As simple as it might be, this trick can make a big difference in your cash flow later on.
Get Friendly with a Health Savings Account (HSA)
HSAs are perfect for handling those medical expenses that pop up more as we get older. Putting money into an HSA will give you a tax break that grows tax-free. Better yet, you can pull it out for any medical stuff, meaning it’s a triple-tax advantage that many people overlook. Starting early can really build up a nice stash.
Like our content? Be sure to follow us.
Think About a Reverse Mortgage
Anyone who’s sitting on a lot of home equity & needs some extra cash may want to consider getting a reverse mortgage. Why? Because you get to stay in your home and get some money out of it. Of course, it’s not for everyone — and you’ve got to read the fine print.
Give Annuities a Look
Yes, annuities sound old-school but they’re still useful. It just like buying a paycheck for your future self. You give an insurance company some cash then they promise to pay you a certain amount of this regularly for the rest of your life. This way, you can make sure you have another stream of income coming in.
Don’t Leave Free Money on the Table with Your 401(k)
If your job offers a 401(k) match and you’re not maxing it out—why? You’re saying no to free money! It’s one of the easiest ways to boost your retirement savings without having to do much of anything as long as you make sure you’re putting in enough to get that full match. It’s an instant return on your investment.
Spread Your Investments Around
Putting all your eggs in one basket is seriously dangerous—especially with your retirement savings. Diversifying your investments will protect you from any major market swings and that means mixing things up with stocks & bonds. You can even try real estate! Just remember you’re not making a quick buck but protecting what you’ve got. This way, it can grow over time.
Consider a Roth IRA Conversion
If you’ve got a traditional IRA then perhaps try switching some or all of it to a Roth IRA. Yes, you’ll have to pay taxes on the amount you convert—but then you’re set up for tax-free withdrawals down the line. You’ll need to be careful planning it. But either way, it’ll help you manage those taxes so your money lasts longer.
Purchase Long-Term Care Insurance Early
One of the biggest expenses that can drain your savings as you age is the cost of long-term care. As such, investing in long-term care insurance before you hit retirement will save you a lot. Premiums are significantly lower when you’re younger & healthier! Think of it as a way to protect your future self.
Take Advantage of Senior Discounts
While they might seem small, those senior discounts add up, particularly if you start using them as soon as you’re eligible. It doesn’t matter if you’re dining out or buying groceries—there are discounts out there for the taking. As such, you should make it a habit to ask about senior discounts everywhere you go.
Try Frugal Living
Living frugally doesn’t have to involve pinching every penny or denying yourself the good things in life. Instead, you should be mindful of where your money’s going. Make sure you’re spending on things that really matter to you by cutting back on unnecessary expenses. Your savings will last longer—and honestly, it’s quite satisfying to find creative ways to live well for less.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
Like our content? Be sure to follow us.
Read More:
