If you’re a baby boomer (born between 1946 and 1964), then you’re quickly approaching retirement age (if you’re not in it already).
That means making smart decisions with your money is of utmost importance. Because most people have a somewhat fixed income in retirement, it’s beyond essential to use a solid financial plan to effectively stretch your money as far as possible.
Here are the top 5 money tips for baby boomers to help you make the most of your hard-earned savings.
In a perfect world, you’ve been following a detailed financial plan for decades. But we all know that we don’t exactly live in a perfect world.
Those that haven’t spent much time on a financial plan would be wise to create one now. In fact, it’s never too late to make financial planning a priority.
According to Work 911, consulting a financial planner is one of the best steps you can take when creating a financial plan. Navigating the world of finance is difficult to do on your own, even for those that have been following a decent plan for years.
A financial planner can help point you in the right direction and make the most of your investments.
With retirement quickly approaching, it’s necessary to come up with a set monthly retirement budget.
Much like a traditional budget plan, a retirement budget plan helps you keep your expenses in check against your retirement income. Take all of the income you expect to make into account (including that from investments and real estate) when creating your budget plan.
Bank Rate insists that part of planning your retirement budget is making sure it holds up against the most common expenses that ruin retirement plans.
This will allow you to tweak your plan, before retirement, so that you preemptively plan for any emergencies that are likely to come up.
Most of your retirement income will likely come from your savings account. So it’s essential to create a savings withdrawal plan to stretch your savings throughout your retirement.
As one of the top money tips for baby boomers is creating a saving withdrawal plan helps ensure you receive enough to cover all your expenses outlined in your budget plan each month.
It also helps minimize tax consequences and protect your principle.
Principal.com states that creating a savings withdrawal plan is one of the top things your financial planner will help you do.
Bank Rate offers a handy savings withdrawal calculator that can help you have an idea of what your withdrawal plan should look like before you talk to your financial planner.
According to the AARP, approximately 8 in 10 baby boomers plan to work at least part-time in retirement.
Why not utilize the sharing economy as your part-time flexible retirement job? Working a few hours per week for a platform like Uber or TaskRabbit allows you to set your own hours and make some serious money in the process.
Airbnb is another popular option to pull in extra cash without holding down a “real” job.
Our sharing economy income calculator shows you how much you can make from these powerful platforms.
According to Forbes, only 25% of Americans have a will.
Yet a will is one of the most important financial documents can have. Creating a will is also the last of our top money tips for baby boomers.
A will helps your heirs make sense of your finances after you pass away. It ensures that they won’t have to probate your will.
In short, a will outlines how you want your estate to be handled to prevent headaches for family members and other heirs.
Luckily, creating a basic will is easy. There is plenty of affordable software available that allows you to create a basic DIY will on the cheap.
Wealth Management also states that your financial planner should be able to help you with the basics of estate planning.
There’s no time like the present to get your financial life in order, especially if you’re a baby boomer quickly approaching retirement.
These top 5 money tips for baby boomers discussed will help you set the groundwork for an effective retirement plan.
Glenn Carter is a sharing economy expert and is sharing his passion for side income through new digital platforms with his readers.