Retirement is supposed to be a time when people move to Florida to sip drinks on the beach, or settle in Arizona to play endless rounds of golf.
But in reality, a huge percentage of Americans are happy to remain right where they are. A 2018 AARP survey found that more than three-quarters of people age 50 or older prefer to stay in their current homes as they age, as we reported in “The 5 Best Home Upgrades for Retirees.”
In fact, there are many good reasons for remaining in your hometown after retirement. Following are some of the best.
Everybody dreams of a dirt-cheap wedding, or getting a steal of a deal on a house, or having someone magically foot the bill for our child’s college education.
But for most of us, those are pipe dreams. The real way to save money is to spend less of it, particularly by trimming the costs of more mundane purchases we make every day.
Following are ways you can cut costs on such recurring expenses.
I have a grade-school daughter, and let’s just say she’s not always super careful about using coasters on our wooden coffee table.
Let’s also say that we don’t have the money to run out and buy another coffee table just because her glasses of ice water left behind some ugly white circles.
So, I did the modern equivalent of calling your mother for advice, and turned to the internet for a solution. Numerous home remedies came up, but for some reason I was drawn to the one that promised great results using mayonnaise.
Spoiler: It worked! And it’s inspired me to share my top cleaning and repair hacks:
There are certain purchases that buyers tend to regret.
No, that doesn’t mean everyone: There are plenty of happy boat and hot tub owners out there, and surely more than a few people count their timeshare property as a true delight.
But when faced with one of the potential purchases listed here, take a breath and think seriously about the purchase.
Mother’s Day falls on May 12 this year. You haven’t forgotten, have you?
While you’re thinking about how best to thank Mom this year, consider some of the ways she helped marshal the family resources and taught you to save and spend money.
As a tribute to mothers everywhere, Money Talks News hit the streets to find out the top financial lessons people learned from their mothers.
Here’s what we heard people say about maternal money wisdom. Turns out, moms are a sensible bunch.
1. Spend less than you make
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That’s the advice Money Talks News founder Stacy Johnson’s mom gave him. Given that he took it and ran with it, she gets credit for helping turn him into the personal finance expert he is today.
Her words of wisdom underscore the most basic truth of money management: If you spend more than you make, you’re headed down the path to debt, stress and maybe even bankruptcy court.
“I’ve never paid a bill late. That’s not because I’ve always been wealthy and it’s not because I’ve never lost a job, gotten divorced or otherwise experienced financial catastrophe. The secret? Spending less than you make. Do this, and you’ll automatically create a cash cushion that will come in handy when push inevitably comes to shove.”
2. Borrow only as a last resort
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Stacy’s mom also advised him never to borrow unless absolutely necessary.
Getting a mortgage may be unavoidable in the modern world — and, even then, you should compare rates so you don’t spend too much — but we doubt Ma Johnson would approve of going into debt for a big-screen TV.
3. Save for a rainy day
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Moms often suggest saving for a rainy day. One day, it’s going to pour.
Eventually, you’ll want to have enough in the bank to cover at least three to six months’ worth of expenses.
4. Graduate
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Moms want their kids to do better than they did. When we asked Money Talks News readers for their moms’ money advice, “Njmom” wrote that her mother told her:
“Get a good education and be independent so you don’t have to put up with the crap I have to.”
Education can be an excellent investment: The average high school graduate earned a median $730 per week in 2018, compared with $1,198 for college graduates and $1,825 for people with doctoral degrees, according to the U.S. Department of Labor.
Forget about snakes, sharks and crocodiles. There’s a bigger — and yet, significantly smaller — predator in town: the mosquito.
Many people consider mosquitoes to be a mere nuisance. But the blood-sucking insects are actually among the most lethal pests on the planet, responsible for millions of deaths each year from the diseases they carry. According to the World Health Organization:
“In 2015 malaria alone caused 438,000 deaths. The worldwide incidence of dengue has risen 30-fold in the past 30 years, and more countries are reporting their first outbreaks of the disease. Zika, dengue, chikungunya, and yellow fever are all transmitted to humans by the Aedes aegypti mosquito.”
The health risk also appears to be growing in the U.S. Last year, the Centers for Disease Control and Prevention said cases of disease linked to mosquitoes, ticks and fleas had more than tripled in the country since 2004. The CDC attributed the rise to increased global travel and trade, environmental changes and a lack of prevention efforts.
Chances are, a mosquito bite or two won’t land you in the ICU. But at the very least, the itchy bites are sure to bug you. Here, we’ve identified seven smart and inexpensive ways to send those hungry pests packing.
If you can come up with $1,000, you can definitely treat your family to a nice vacation this year.
We’ve pulled together a list of five ways to have fun on a tight travel budget.
Of course, how far you travel is a major factor, and one of your biggest expenses may be the cost of getting to your destination. That’s one reason Hawaii will likely never be an affordable vacation destination — unless you already live there.
So, look for a travel spot that has cheap flights or is within driving distance, and then try one of these options.
1. Camp (or glamp) across the country
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Camping seems to stir mixed feelings. For some people, it makes them think of dirt, sunburns and awkward summer camp experiences. Others equate camping with adventure, tranquility and an opportunity to unplug.
If you fall into the first category, don’t rule out camping altogether.
Today, you can stay in modern cabins at national parks or in RVs at private campgrounds that are outfitted with resort-like amenities. This form of luxury camping, aka “glamping,” will cost more than pitching a tent, but it can still be an affordable way to vacation.
Some destinations to consider:
2. Explore the Midwest
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If you want a big-city vacation, skip the coasts and look to the Midwest instead. The cost of living is typically lower in this region, so your money will go further than it would in New York City or Los Angeles.
Chicago, of course, is the biggest city in the Midwest, and it’s also among the most expensive in the region. So, instead of following the crowd, look for a midsized city that combines a vibrant downtown scene along with a mix of arts and cultural events.
Midwest towns may have the reputation of being a bit vanilla, but don’t let the stereotype fool you. Depending on which state and city you visit, the region has award-winning chefs, countless craft breweries, art museums, zoos, long sandy beaches and more.
Some destinations to consider:
3. Do a house swap
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After getting there, your next biggest expense while vacationing is likely staying there — wherever “there” may be.
Save money by finding a place to stay for free. You could try mooching some free accommodations from a friend, but a house swap may be a better way to keep both your finances and friendships intact.
You could arrange a house swap on your own through Craigslist or a travel message board, but a house swapping website or club may offer you additional protection. These sites may vet users and provide reviews of potential swap partners.
Using a website or club is more expensive than arranging a swap on your own, but the peace of mind is likely worth the annual or monthly fee. Still, do your research before deciding on a home swap vacation, and tuck away your valuables if strangers will be staying in your house.
Just because some cruises are expensive doesn’t mean all cruises are expensive.
If you’re flexible and don’t mind booking at the last minute, you can get some deep discounts. On the flip side, if you want to be able to get your choice of cabin at a decent price, booking well in advance might be advisable.
Once you find a cheap cruise, keep your vacation affordable by understanding how much you will have to pay for on-ship amenities. Limit paid beverages, skip high-priced excursion options and focus on the free or low-cost entertainment found on the boat or on the shore.
Some websites to try:
5. Go almost anywhere in the off-season or ‘shoulder season’
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You can get a deal at countless destinations if you’re willing to travel in the off-season.
However, the off-season might not be ideal for you. Maybe the weather at your destination is more likely to be unsatisfactory or maybe the off-season conflicts with your kids’ school schedule. In that case, look to book a vacation during a “shoulder season” — the month before or after the peak travel season for the destination.
The discounts won’t be as deep as you’d get in the off-season, but you’ll still pay less for lodging, have fewer crowds to fight and probably get decent weather.
Some destinations to consider:
Where do you go for a cheap vacation? Leave a comment below or head to our Facebook page to share your favorite affordable destination.
Investing in your 60s is a time of transition. No longer are you focused on growing your retirement funds. Now, it’s time to crack into that nest egg.
So, you need to change your investment strategy. The idea is to withdraw enough to help you get by while holding enough in reserve to finance the rest of your life.
Here are 11 pointers:
1. Estimate how long your savings must last
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You can’t plan effectively without an idea of how long your money should last.
Of course you can’t know how long you’ll live, so we’re talking about estimating the longest you might live, so you won’t run out of money too soon.
A 65-year-old woman can expect to live to nearly 87, and a man who is that age can anticipate living until 84, says the Social Security Administration, whose Life Expectancy Calculator gives a rough idea of expected lifespans.
2. Calculate annual expenses
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To plan your finances in retirement, you’ll need specific spending data, not estimates. If you budget and have tracked your spending, you’ve got the data you need. If not, start now.
Automatic tracking is simple with tools like those provided by Money Talks News’ partner You Need a Budget. But a notebook or spreadsheet also will do — as long as you keep it up.
After tracking for a few months, you’ll begin to see where your money’s going and can decide how much to withdraw from investments.
3. Fully fund emergency savings
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Keeping a cushion of savings in cash or short-term CDs lets you ride out market downturns without selling stocks at low valuations. Some experts advise having a big enough emergency fund to support yourself for 18 months to two years.
4. Plan your withdrawals
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Retirees need a system for regular cash withdrawals. For example, one popular system suggests withdrawing 4% of your initial savings balance each year, then adjusting that amount annually for inflation.
The 4% rule is not ironclad, but it does provide a framework. The key is to adopt a system, then adjust it as necessary.
5. Seek safety
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How much you keep in CDs, bonds and high-yield savings accounts depends somewhat on how much safety you require. Intelligent risk is necessary with part of your investments if you don’t want inflation to erode your portfolio’s value.
Many retirees follow this rule of thumb (called the “glide-path” rule):
Subtract your age from 100. The resulting number is the percentage of your investments you should hold in stocks.
Invest the remaining amount in bonds and money market funds.
If you’re 70, for example, keep 30% of your portfolio in stocks — including mutual funds and ETFs — and the remaining 70% in bonds.
Does this rule provide enough growth to keep a portfolio going strong? Experts disagree.
The other end of the retirement seesaw is the need to grow your nest egg, at least a little.
Unless you have so much money that you don’t need to worry about inflation, you’ll need some growth investments. Usually, that means individual stocks, mutual funds and/or ETFs.
After age 70 ½, the Internal Revenue Service requires savers to begin taking minimum annual withdrawals from some tax-deferred accounts, such as traditional IRAs and 401(k)s.
These minimum withdrawal amounts are calculated by the IRS based on life expectancy and account balances. The IRS rules are specific and inflexible about how much to withdraw and when. Ignore them, and you could face stiff IRS penalties.
Growing older has its advantages. As time passes, you get a little wiser. After retiring, you have more free time to channel that wisdom into doing the things you enjoy.
Even better, all that fun often can be had at a steep discount. There are many ways for seniors to get cheap — and even free — entertainment and services.
Some of these offers are available based on age or income, while others are open to everyone — even those who have yet to reach their golden years!
Following are some things seniors can get for almost nothing.
Buying a new roof isn’t cheap. The average national cost of replacing a roof is $7,633, with most homeowners spending between $5,203 and $10,119, according to data from HomeAdvisor.
Costs vary depending on where you live, the type of materials you use and whether or not you have other home improvement work that needs to take place alongside the roof replacement. Following are seven steps to getting a good deal on keeping a solid roof over your head.
1. Get an inspection
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Unless there’s a glaring problem, it might be difficult to spot exactly what’s going on with your roof. You might see that a few tiles were blown off in a windstorm or notice a leak, but those observations only tell a small part of the story.
If you really want to know what’s going on, hiring a roof inspector can be a good investment. HomeAdvisor says you’ll pay an average of $203 for an inspection.
An inspection can help you determine whether you really need a new roof — or can simply repair the roof you have. Roofing companies can also make this assessment, but you will have to be confident that you will get an unbiased opinion, as they might have an interest in selling you a new roof.
2. Find out if the roof is under warranty
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If you have recently purchased the home, look at whether the existing roof is still under warranty. You might have received that information upon purchasing the house. If not, try to get in touch with the people from whom you purchased the home, or review any repair records.
If your home is new, you might also have some coverage under a new-home warranty. The Federal Trade Commission offers guidelines on how such warranties typically work.
In addition to warranties, you might also want to look at the local bylaws of your housing association. For example, if you live in a townhouse community, your housing association might actually be responsible for replacing the roof.
3. Decide whether to repair or replace
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Assuming you don’t have any warranty coverage, you’ll need to decide whether to repair or replace the roof. Calculate how near the roof is to its natural “end of life.” You should be able to get that information from your roof inspector or the warranty information.
If the roof still has 10 or 15 years left in it, and the cost of the repairs is relatively inexpensive, it might be worth doing a repair. Just make sure you’re not throwing money at a temporary fix to a problem that soon will require a complete replacement.
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