How to Make Your Retirement Savings Last Longer

Author

Safe Harbor Law Firm

Posted on

Dec 08, 2021

Book/Edition

Florida - Southwest

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For the vast majority of people considering retirement, one question looms above all others: Have I saved enough to make the dream of retirement a reality? Tough question, given that it is impossible to predict how long we will live and what future costs we might incur (particularly with regard to health care).
An article in U.S. News & World Report provided the following strategies for retirees to cut monthly expenses and make their life savings last longer.
Pay off your mortgage
Eliminating monthly mortgage payments is of the best ways to make retirement more affordable. While you will still have to pay taxes and maintenance costs on your home, these expenses are most likely a fraction of your mortgage payments.
Downsize your home
When your children have moved out and become independent, do you really need that house with several bedrooms in a community with good schools and large yards? Downsizing to a smaller home in a less expensive community can go a long way to increasing your nest egg and lowering your monthly expenses
Sell one of your vehicles
When you and/or your spouse commuted to work every day, each of you probably needed his or her own car. In retirement, you may find this is no longer the case. By selling one of your vehicles, you eliminate the insurance, maintenance and fuel costs associated with it. If you live in or move to a community with excellent public transportation, you might not even need a car at all.
Cut your tax bill
While you will need to pay taxes on withdrawals from individual retirement accounts and a 401(k), thoughtfully spacing out your withdrawals can help avoid a large tax bill at years end. Prepaying income tax on retirement savings by using a Roth 401(k) or Roth IRA can reduce your tax liability as well.
Avoid high investment fees
Many mutual funds and other investments charge high fees. For retirees living primarily off of income from their portfolios, minimizing investment costs is particularly important. Investing in lower-cost funds that meet your objectives means more money in your pocket.
Avoid penalties
Withdrawing money from your retirement account too soon or too late can lead to substantial penalties. In addition, taking Social Security payments as soon as you can reduces your benefits in the long run. You will also be penalized for late enrollment in Medicare Parts B and D.
Minimize health care costs
While none of us can predict our future health care needs, there are some ways to control costs. For example, you could purchase a supplemental policy to Medicare to cover cost-sharing requirements associated with traditional Medicare. Shopping for a new Medicare Part D plan annually can ensure you are getting coverage for medications at the best possible price.
Take advantage of senior discounts
Senior discounts at restaurants, movies and museums are highly publicized and widely known. Others are not. Don't be afraid to ask for a senior discount.

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Safe Harbor Law Firm

Elder Law 4500 Executive Drive, Naples, Florida, 34119

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Safe Harbor Law Firm

Veterans Benefits Attorney 4500 Executive Drive, Naples, Florida, 34119

At Safe Harbor Law Firm (formally known as Buff Law Firm PLLC), we focus on estate planning, elder law, and closely related practice areas. Our true focus, however, is helping families plan for and take control of their future. This can involve:Ensuring your assets will go to the people you want, when you want, in the manner you want after you pass awayPreparing for the possibility that you or your spouse will need expensive long-term careand helping you find ways to pay for itEnsuring that people you trust have the authority to make financial and medical decisions on your behalf in the event of incapacityProtecting your assets and those of your heirs against threats such as creditors, lawsuits, divorce, the high cost of long-term care, and moreGuiding your loved ones through the probate and/or trust administration processSafe Harbor Law Firm has helped families from all walks of life find solutions to challenges like these and many more. We welcome the opportunity to do the same for you. Ultimately, our goal is to help you enjoy the peace of mind that comes from having a plan in place for the future. We invite you to contact us for a personal meeting to discuss your particular needs and goals.

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