This video, 7 GENIUS Things Retirees Do With Their Money, outlines seven ways retirees use their money to create even more money and improve their lives. Many of the strategies discussed are not mainstream, so you won’t hear the usual advice (while good advice in most circumstances): delay social security, pay off your credit cards, join discount clubs or pay off your mortgage.
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I think one of the best things was to downsize and move. Downsizing is less stressful and opens time for other activities. Moving, while not necessary, gives you a chance to well, be someplace else. Reducing stress is great and while moving is stressful in itself, it is temporary. Get out of the city. The other thing I found out about moving was I got rid of a lot of stuff. Since I downsized, I had no room for 30 years collecting stuff that I thought I needed. Get rid of the baggage, you will feel better and be more likely to choose a hobby/project that is more age appropriate. One thing about retirement I would probably put first on any list is be leery of the couch, they will age you faster than food left out on a picnic table. Don't be a potato. Find something you enjoy and do it. Live within your means, but be active and take care of yourself.
This pandemic made me realize how important investment really is, I am 35 this year a business owner here in Australia with no investments and that is not good , as a beginner in the stock market am finding it difficult to invest right now, I don't have the time and the market is also not very stable, I really need to invest my earning in stock market, I know now is the right time.
My son graduated from college last month. Our experience with textbooks was that he needed lots of very overpriced textbooks for lower level courses and as he moved up through the years, there were more options for renting physical books or using virtual text. Frankly, my opinion is that college textbooks would already be obsolete if not for the influence of several big name publishers along with the college professors who write the books and assign them as mandatory text in their own class.
Here’s a suggestion: college debt forgiven in exchange for military service, law enforcement, teaching/medical professions, etc. in underserved communities, working as a firefighter? Many people joined our military for the GI Bill benefits. That’s how I put my son through college. I had college loans myself, and paid them myself while serving in the military. This college debt repayment scheme is pandering, pure and simple. I’d like to hear what you have to say, agree or disagree.
Banks are a scam, credit reports are a scam. I guess I should say they are a form of slavery. Covid should have made that clear. Do not live paycheck to paycheck and live within your means. New cars are another scam. 100% a status symbol. Car quality has also gone downhill. NEVER ever buy a car assembled in Mexico. God loves you. Dont be stupid. One issue about upgrading your heating and AC. DONT do it unless they are broken. The newer ones will not hold up 20 years. The high efficiency stuff never works as well. If you like a warm house in the summer and a cold house in the winter.. go for it. IF you are gonna sell your house in the next year, sure upgrade. It's the next owners problem.
Thank you, sir! I do like your suggestions.
On the ISSUE OF BOOKS! State and city colleges force students to spend MILLIONS each year in books. Someone is getting kickback dollars! For profit colleges use webpages and PDF files for books and references. As a senior citizen and student I have experienced both. PLEASE DO A CLASS ON SENIOR CITIZENS GOING BACK TO SCHOOL AFTER RETIREMENT. I am 70 years old and going back to school because I am scared of this new inflation and future insolvencie of Social Security. Additionally my doctor suggests increased memory use will improve my aging memory. I am happy to share my experiences with you in your quest for journalistic research. Also I think you are AWESOME!
every market crash that you use the bucket strat. is an opportunity to do roth conversions up to $25,000 for a married couple and not have to pay taxes.
Have several sources of income is a vital step. Such as Social Security, Annuity, pension, part time job, etc. It adds up but set them up before you retire. Also have different buckets of money. That's your buffer. Such as Savings, CD'S, untouched annuity, municipal bond, etc. I personally use an inherited annuity as a cash flow buffer for home emergencies like plumbing appliances, etc. I only use my IRA brokerage investments to take Required Minimum Distribution which some of which I reinvest and place some into a money market
Cash buffer; pay annually, buy end of season,invest wisely,spend wisely,look after yourself and your loved ones,enjoy yourself with your loved ones, use time wisely, carry on learning- and enjoying it, remodel your home- for living in, use efficient- and green- energy,and don’t forget insulation (which cuts AC costs as well as heating costs, plan spending throughout the year, use paper (don’t lose it!), ; thank you
We use a HELOC on our otherwise paid off house in lieu of a cash buffer, like a business current account. Buy a car, write a cheque on it, pay it off over the next several months, or for any time there's a monthly deficit between spending and income. The balance floats between 0 and 30k or so at any one time, although there is 250k available. You have to be financially disciplined for it to work. Too many people would just run it up to the limit on a spending spree.
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I'm a notebook guy. That way as long as there is no fire I know the info will be there and not get lost. I do the same with phone numbers. Phone gets wet and wiped out I still have the numbers.
College students buy books because professors write books and colleges get a kickback from selling a book for $300.
My daughter just started he PhD program after getting a BS in microbiology. She probably didn't have to buy 10 books in 3 years of college. She actually rented books from Amazon.
I use my phone for Kindle for 2 reasons. It weighs less than a hardback book, and my eyes work better with the phone because I can adjust the font.
Hey, that wasn't Miami Beach! That was on La Malecon in Puerto Vallarta, in front of Bubba Gump's.
I wish basic infrastructure would go on sale HERE- my house needs windows, a new furnace (I'd love to add A/C), and new flooring (rip out 20yo wall to wall carpet, replace with cleanable floor).These add up to a LOT of money, and house prices are going down..so it's a tough call: Move? or fix and stay? $5000 for a new furnace doesn't come close around here, think $15K
I keep hearing about paying off a mortgage. I have a 2 year old 1.75% (not a typo, ONE point seven-five), 30 year fixed rate GI loan. WHY in the name of logic would I want to pay off that cheap loan, tying up $500k that I can do numerous other things with? Worst case, I’m sharing the risk of owning this shack with all of you if something really bad suddenly occurs and I have to walk away from it. (i.e. dirty bomb 25 miles upwind at Stanford).
I've always had my retirement "knife", but watching your videos have helped me "sharpen" it to pretty near ready. My wife and I have roughly 3 more years before we can get off the hamster wheel. So looking forward to that!
Thanks for sharing the information.
That’s neat that you included Doxie Din in your video! (Check out his YouTube channel)
Do not replace appliances that are not broken. Chances are the newer ones will not last nearly as long as the ones you throw away. Also realize that the efficiency standards that the manufacturers report are almost always exaggerated.
The t in often is silent…
I would add use of credit cards that pay points only for monthly bills and things you normally buy anyway and pay it off every month. Using myself as an example I pay all my utility bills with my credit card and get a 5% return in points. If my electric bill is $100 and I pay it using my credit card I get $5 worth of points effectively making my bill $95 instead of $100. I have cards that give me from 1% to 5% back. Two of my cards give me 5% back on gasoline three months out of the year. I typically allow my points to accumulate until I eventually have enough points to pay off one month's credit card bill. It doesn't take long and gives me a vacation from that payment. Using your cards every month helps to maintain a favorable credit rating. Of course the object is to avoid debt but it's a good idea to keep your credit in the best possible standing because emergencies do arise and you might have no choice but to borrow. The higher your credit rating the more favorable your rate would likely be. Just make sure your limit is high enough that you don't use more than 20% of available credit. Some cards offer other benefits like spending tracking so you can see where your money goes. Some cards even offer free extension of warranties, free credit tracking and reports ID theft prevention with zero liability if you account is used fraudulently. There is only one rule that shall not be broken. Paying the card off every month is paramount.
One thing that is GREAT is to get solar panels for your house. It will take. you usually single digit years to break even and if you live in California..it will take about 6 years. After that…basically all your energy is FREE!!!!
You aren't even in the ball park on ROI for heating and air replacement. you will hardly ever save $1000 per year on hvac replacement and will likely never ever find a replacement for $5000. I've been in the business for 30 years. Step 1. Go to all LED lights, every one. Step 2. get your air conditioning ductwork checked, tested and sealed air tite. (worth far more than replacing the system in most parts of the country) . Step provide a 4" vent from the outside into your laundry room by the dryer. it will also do more than a new hvac system. These are just the beginnings. no one is so unhappy as someone who was told their hvac system will pay for itself. just saying.
Being 90 and doing great (top 8%), I know all the pitfalls and all the good stuff. I never made more than 50K in my life, but am a good planner.
The best thing I ever did was to start using Quicken. That was 30 years ago now. (Note: I am in affiliated with Quicken.) Use of this tool will show you, through looking at your net worth, how paying off debts does not affect your immediate position at all. (One asset goes down but so does one liability, by an equal amount). Makes paying off debts easier to take. You can track your cash-flow with the calendar tool if you get all your upcoming bills and income scheduled. You can attach images of receipts to the associated transaction. You can see exactly what you paid for items you regularly use. The last 12 years' entries of mine are excruciatingly painfully detailed. It does have a learning curve; I continue to learn as I use it. I will state unequivocally that this one tool got me into retirement years before I would have otherwise been able to accomplish that, simply because I had one place to keep score and store my receipts.
I find it hard to believe that telling people to spend upwards of $100,000 in the early part of their retirement is great advice. A home renovation in early retirement. Seriously?!
Making money is an action. Keeping money is behavior. Growing money is knowledge!
Great contents. When it comes to investing, you have to continue to build wealth. I fully retired at 57 and have continue to stay relevant in the equity market. I enjoy it and it fills most of my mornings. By reinvesting my dividends, I can continue my compounding rolling.
Agree with you on the paper planner! Hitting pause is the best explanation because it's actually true! Many don't believe this though until they actually try it.
Better check your Math on flooring upgrade…return 147% is $147 back on $100… Not $247.????
Perhaps the shelves in the college book store are full because the kids are not buying books. Just saying.
I spent my life working, investing and sacrificing. Now we are retired with plenty money. We keep 5% of our funds in cash and are still careful. But this is our main event, so we are spending rather freely and helping others. This is not a dress rehearsal.
One problem with college text books is their price. Digital versions are not substantially cheaper and you can’t resell them when your done. You can get used books at a significant discount and then resell them when you’re done. It is true that digital is different from paper and people have different preferences. But the decision of which to buy isn’t often just financial.