Saving, Not Spending for a Rainy Day

 

 

I try and work out every day. I rarely eat dessert and often am in bed by 10 pm.

In my humble opinion I think I have preserved pretty well for a man encroaching on collecting Social Security, but in full disclosure, I still wince when a clerk automatically gives me the senior discount at the supermarket checkout. In the not-too-distant future, retirement will be a fact of life and hopefully I will have enough saved to remain ensconced in a reasonably comfortable lifestyle.

In that same vein, this weekend I came across an article that detailed several ways that retirees foolishly fritter away their savings.

Some of them surprised me a bit, others seem like common sense. So, in the spirit of preserving your retirement savings for a long as possible here goes:

1.       Ignoring senior discounts. I know it might offend some age sensitive people (like yours truly), but the fact is that many retailers offer discounts that may hit as high as 20 percent.

2.       Purchasing unneeded insurance products. Disability Insurance when you are no longer working and even life insurance in some cases is at the top of the list.

3.       Continuing to support grown children. This sadly, is an all-too-common scenario. My kids are still on my mobile phone plan but that’s as far as it goes. There are a number of other ways you can help your offspring without emptying your wallet or portfolio.

4.       Having two cars. Multiple vehicles are a necessity when both spouses work, but when both throw in the towel, it often makes sense to get by with one vehicle. Otherwise, repairs, gas, state inspections and registrations add up.

5.       Not downsizing. This scenario hits close to home if you’ll pardon the bad pun. There’s a long-retired couple down in my neighborhood who continue to live in a spacious 10-room house. Their children moved out years ago and now they must continue to meet the requisite financial obligations that a home that size requires. In fact, a recent study conducted by Merrill Lynch revealed that nearly 33 percent of retirees actually upsize to a larger home to accommodate family members who visit. Go figure.

6.       Donating to multiple charities. Again, this is familiar territory as I receive at least 3-4 pieces of mail asking for donations on a weekly basis never mind the relentless telemarking calls which are often scams. Retirees tend to be more generous in their golden years but as I can attest, it can get out of hand.