3 Ways Seniors Can Stay Financially Solvent In The Face Of Inflation
If you have read a news report or a grocery receipt in the past few months, then you know that inflation is the highest it has been since the 1970s, when you were new to the workforce. Younger folks tend to cope with inflation by picking up additional gig work, but that is not a practical strategy for retirees. If you think that returning to the workforce will make you feel young, healthy, and productive, then by all means, do it. Do not think that working until you drop is your only choice, though. By downsizing, saving, and investing strategically, you can make your retirement savings stretch farther than you had anticipated. For more advice about coping with the current tough economic climate as a retiree, contact an Orlando estate planning lawyer.
Use the Ladder Method of Investment
Whether you choose a CD ladder or a bond ladder, the ladder method of investing requires long-term planning, but it guarantees inflation-proof returns. Investing in several CDs with different maturity dates. When one CD becomes mature, invest it in a different CD; if you need to keep part of the money in a checking account for expenses, then reinvest as much of the payout as you can afford to. Having a steady stream of CD payouts will give you financial stability. The sooner you start on this project, the better.
Use Your House to Generate Income
If you own your house, whether or not the mortgage is paid off, it is potentially a valuable source of income. Home mortgage interest rates have spiked over the past year, but if you sell your house and buy a less expensive one, you can get a more affordable house with little or no mortgage debt. If the process of buying and selling a house sounds like more stress than you want to deal with, then stay in your current house, but rent out extra rooms or ask your children to move back in with you. If you tell them that you can no longer afford to help them pay their rent, then they may decide on their own that moving in with you is the most affordable choice.
Take Advantage of Senior Freebies and Discounts
The senior breakfast at Denny’s may be more expensive than it was a few years ago, but it is still cheaper than the usual menu price. Little savings add up, so make your rounds of early bird specials at your favorite restaurants in town. If dining out is not in your budget at all, look for programs in your area that offer free meals or free groceries for seniors.
Contact Gierach and Gierach About Coping With the Possibility of Financial Hardship
An estate planning lawyer can help you work around the fact that your money does not currently go as far as you were hoping it would go when you deposited it into retirement accounts. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Source:
kiplinger.com/personal-finance/inflation/604809/3-ways-to-keep-inflation-from-shrinking-your-retirement
