Background

27 Things Retirees Should Do With Their Money Right Now

Article arrow_drop_down


Ridofranz / Getty Images/iStockphoto

Ridofranz / Getty Images/iStockphoto

Retirement isn’t the end of your financial journey. Though you may have called it quits on retirement planning, you’ll still have to understand how to save and spend money in retirement. This isn’t always easy, as you’re likely living on a fixed income.

For You: 8 States To Move to If You Don’t Want To Pay Taxes on Social Security

Explore More: 9 Easy Ways to Build Wealth That Will Last Through Retirement

Therefore, it can be frustrating that there’s no standard playbook dictating where retirees should put their money. However, a lack of one-size-fits-all advice is a positive.

It empowers you to choose from spending and saving options, shaping your retirement into exactly what you want it to be.

monkeybusinessimages / Getty Images/iStockphotomonkeybusinessimages / Getty Images/iStockphoto

monkeybusinessimages / Getty Images/iStockphoto

Start a Business or Side Gig

In retirement, you’ll have more free time to devote to your hobbies and passions. There might be no better time to invest in a side gig or part-time business.

Draft a business plan, speak to your local chamber of commerce or state licensing board and figure out how much it will cost to launch your new project. Whether you follow your dream for your fulfillment or to turn a profit, this could be a satisfying use of your retirement funds.

Consider This: Cutting Expenses for Retirement? Here’s the No. 1 Thing To Get Rid Of First

Try This: 7 Things You’ll Be Happy You Downgraded in Retirement

Earning passive income doesn’t need to be difficult. You can start this week.

Rawpixel.com / Shutterstock.comRawpixel.com / Shutterstock.com

Rawpixel.com / Shutterstock.com

Donate to Charities

When you retire, you might not have as many expenses as when you were working. Your mortgage and cars might be paid off, and your kids will likely be on their own.

If you find yourself with excess cash, consider increasing your contributions to your favorite charity. In addition to getting a possible tax break, you’ll be using your golden years to help out others in need.

Find Out: 2 Changes Are Coming to Social Security in 2025

Tinpixels / Getty ImagesTinpixels / Getty Images

Tinpixels / Getty Images

Continue to Regularly Invest

Just because you’re retired doesn’t mean that you should stop investing. For one thing, retirement might last a lot longer than you imagine.

As of 2024, the Centers for Disease Control and Prevention estimates life expectancy at 77.5 years old. If you were to retire at the early retirement age of 62, the estimated life expectancy leaves you with over 15 years of expenses without regular work.

That’s a long time to stretch out your money, and it could be even longer. Keeping your funds invested — and contributing more — can help ensure that you won’t outlive your money.

©Shutterstock.com©Shutterstock.com

©Shutterstock.com

Open Accounts or College Funds for Grandchildren

If you feel like your retirement is set and you don’t need to sock away more money for yourself, how about starting some investments for those you love?

You can open regular investment accounts for your children, grandchildren or other relatives, or you can open specialized educational accounts such as a 529 plan. An added benefit of a 529 plan is that you can change your beneficiary at any time — even making yourself the beneficiary.

katleho Seisa / iStock.comkatleho Seisa / iStock.com

katleho Seisa / iStock.com

Delay Social Security

Though not a place to “put” your money, delaying Social Security is an excellent example of what you can “do” with your money.

If you were born in 1943 or later, every year that you can defer taking Social Security increases those payments by up to 8%, up until age 70.

In essence, you’re getting a guaranteed return on your Social Security “investment” every year that you wait, and that’s a return that can be tough to beat.

malerapaso / Getty Images/iStockphotomalerapaso / Getty Images/iStockphoto

malerapaso / Getty Images/iStockphoto

Contribute To a Roth IRA

One clever option for saving in retirement is to contribute to a Roth IRA. The traditional “downside” of a Roth IRA is that you don’t get a tax deduction on your contributions.

However, as a retiree, you’re likely in a lower tax bracket than when you were working; thus, getting a tax deduction on your contributions is not as important. Plus, with a Roth IRA, there is no age limit on contributions, unlike with a traditional IRA.

Check Out: I’m an Economist: Here’s My Prediction for Social Security If Trump Wins the 2024 Election

Yobro10 / Getty Images/iStockphotoYobro10 / Getty Images/iStockphoto

Yobro10 / Getty Images/iStockphoto

Improve Your Quality of Life

Certain things get harder as you age; it’s just the way it is. When you’re retired, your quality of life can be greatly improved if you spend some money on modern conveniences.

If you need help hiking a mountain, invest in a good knee brace; if you can’t get in and out of the car quite as easily as you used to, invest in a door handle or other tool that can give you leverage.

Chaay_Tee / Getty Images/iStockphotoChaay_Tee / Getty Images/iStockphoto

Chaay_Tee / Getty Images/iStockphoto

Invest in Yourself

One of the best investments you can make at any time of your life is in yourself. This doesn’t change after retirement; in fact, many doctors suggest that retirees continually challenge themselves mentally to stave off the deterioration that sometimes accompanies old age.

Invest in a good online course on a topic that interests you, or better yet, invest in an on-site course that requires you to interact socially with other students of all ages.

©iStock.com©iStock.com

©iStock.com

Buy a Fixed Annuity

A fixed annuity is another way to ensure that you don’t outlive your savings. When you buy a fixed annuity, your lump sum of cash is turned into a lifetime stream of income, no matter how long you live.

With life expectancy getting longer and longer, more than 30 years of retirement is no longer unheard of.

Monkey Business Images / Shutterstock.comMonkey Business Images / Shutterstock.com

Monkey Business Images / Shutterstock.com

Pay Off Your Mortgage

If you’re looking at where to put your cash when you retire, consider paying off your mortgage. By the time you retire, the remaining balance on your home might be small enough to pay off in a single lump sum.

Then, you can enjoy the remaining years of your life without having to worry about a mortgage or rent payment. This can free up your funds for other activities, or at the very least, give you peace of mind that you will always have a place to stay for free.

Learn More: Trump Wants To Eliminate Social Security Taxes: Here’s How Much the Average Retiree Would Save

sirtravelalot / Shutterstock.comsirtravelalot / Shutterstock.com

sirtravelalot / Shutterstock.com

Buy a Motor Home or RV

When discussing retirement planning, many advisors suggest that retirees downsize, as single-family homes are often too large and require too much upkeep for a retired couple. One option is to get rid of your home altogether and buy a motor home or RV.

With a smaller, mobile space, you won’t have to worry about property taxes and large property maintenance bills, and you can travel to friends and family and visit places you’ve always wanted to see.

andresr / Getty Imagesandresr / Getty Images

andresr / Getty Images

Buy Rental Properties

In addition to — or instead of — paying off your mortgage, investing in real estate can be a good move for retirees. If you buy rental properties, you can generate passive income every year from your renters. Additionally, the value of the property you buy might grow in value as well.

Another option is to invest in transforming one of the rooms of your existing house into an Airbnb or other rental property, thereby generating income on an asset you already own.

Kinga / Shutterstock.comKinga / Shutterstock.com

Kinga / Shutterstock.com

Invest in Step-Up CDs

A step-up CD allows you to raise the interest rate on your investment to the then-current rate. Although many step-up CDs grant this privilege once during the original CD term, some have multiple step-up options.

These types of CDs can be great investments for retirees, as they not only take advantage of rising interest rates but are also FDIC-insured.

gradyreese / Getty Imagesgradyreese / Getty Images

gradyreese / Getty Images

Buy TIPS

Inflation can be the worst enemy of a retiree. Inflation reflects rising prices for goods and services, from groceries and gas to the price of entertainment. As many retirees are on a fixed income, rising costs make that money less valuable.

A Treasury Inflation-Protected Security can combat the rising prices brought on by inflation, and it’s backed by the full faith and credit of the U.S. government.

Trending Now: 2 Things Empty Nesters Should Stop Investing In To Boost Retirement Savings

szefei / Shutterstock.comszefei / Shutterstock.com

szefei / Shutterstock.com

Add To Your Emergency Fund

When you’re retired, life still goes on. Surprises still come up. You still need to contribute to an emergency fund to have a cushion to pay those expenses.

In fact, in retirement, an emergency fund is even more important, since you won’t generally have as large of an income to cover unexpected costs.

ipopba / iStock.comipopba / iStock.com

ipopba / iStock.com

Buy Income-Producing Investments

As a retiree, you’ll no longer have a regular monthly income from a job. To replace this income, consider investing at least a portion of your money into income-producing stocks, mutual funds, exchange-traded funds or bonds.

Each of these types of investments has its own risk/reward profile, and you’ll likely want to consult a financial advisor to choose the right instruments.

However, some combination of income-producing investments can help replace your lost employment income while you’re retired.

©iStock.com©iStock.com

©iStock.com

Invest In a Variable Annuity With a Guaranteed Income Rider

A variable annuity with a guaranteed income rider is another investment option for retirees looking for both income and growth.

Also known as a guaranteed minimum income benefit, these types of annuities offer the potential for market growth but still guarantee that investors will receive at least a minimum amount of income.

This type of hybrid investment can make sense for retirement-age investors who can’t risk their entire portfolios in the equity market.

Hero Images / Getty ImagesHero Images / Getty Images

Hero Images / Getty Images

Purchase Equity-Linked CDs

An equity-linked CD is a guaranteed product that will give you a basic CD return plus a kicker based on the performance of the equity markets.

Though there’s no guarantee that you’ll earn a huge return, your downside is limited, as you’re always guaranteed to at least get back the amount of your investment.

This can be a good option for retirees who want a chance at a return higher than a straight CD can offer while still protecting their principal.

Read More: The Average Retirement Age in 2024: US vs. China

CatLane / Getty Images/iStockphotoCatLane / Getty Images/iStockphoto

CatLane / Getty Images/iStockphoto

Keep Money in Your 401(k) as Long as You Can

Though not all employers will allow this, keeping your money in your old employer’s 401(k) plan as long as possible can be a great strategy for retirees.

For starters, your money will remain in its tax-deferred wrapper. Even better, you’ll still have access to all of the 401(k) options of your former employer.

Assuming you were in a good plan, this can be a lot less stressful and more convenient than having to roll over your 401(k) plan into an IRA and start your whole investment program from scratch.

wavebreakmedia / Shutterstock.comwavebreakmedia / Shutterstock.com

wavebreakmedia / Shutterstock.com

Make an Estate Plan

To simplify life for your heirs, hire a good estate planning lawyer to draft whatever end-of-life documents are appropriate for your situation. Though some households will only require a will, many others are better served with a trust or comprehensive estate plan.

Not only will this ensure that your money goes where you want it to upon your death, but you can also prepare for other possible contingencies, such as if you become incapacitated.

©Shutterstock.com©Shutterstock.com

©Shutterstock.com

Invest In a Garden

One of the best ways to invest in yourself and to help keep you powered through retirement is to eat healthy food. If you create and maintain your garden, not only are you getting farm-fresh products, but you’re keeping your mind occupied with a hobby that many people enjoy.

Plus, your garden investment is likely to pay off over time, as your vegetables will be much more inexpensive than those you can get from a grocery store.

Syda Productions / Shutterstock.comSyda Productions / Shutterstock.com

Syda Productions / Shutterstock.com

Prepay Funeral Expenses

No one likes to think of their own mortality, but if you prepay your funeral expenses, you’ll solve a number of potential problems.

For starters, you know that you’ll get exactly what you want when it comes to your funeral and burial or cremation. An additional benefit is that you’ll take a bit of the burden off of your heirs during what is bound to be a difficult time.

Check Out: Trump Wants To Eliminate Social Security Taxes: Here’s How Much the Average Retiree Would Save

Sisoje / Getty Images/iStockphotoSisoje / Getty Images/iStockphoto

Sisoje / Getty Images/iStockphoto

Remodel or Upgrade Your Home

Remodeling your home won’t necessarily increase its value — in fact, some renovations are known money losers. So why spend money in retirement on a remodel? At this point in life, it’s time to enjoy the fruits of your labor.

Upgrade your home with something you’ll enjoy, whether that’s a private movie room or a new luxurious bathroom.

Rawpixel.com / Shutterstock.comRawpixel.com / Shutterstock.com

Rawpixel.com / Shutterstock.com

Upgrade to Energy-Efficient Appliances

As a retiree, you can expect to be home more than when you were working. The more time you spend at home, the higher you can expect your utility bill to be.

To combat this, consider upgrading your appliances to energy-efficient ones. This can result in big savings, especially if you’ve had the same appliances for 10, 20 or even 30 years.

Tero Vesalainen / Shutterstock.comTero Vesalainen / Shutterstock.com

Tero Vesalainen / Shutterstock.com

Buy a Bigger TV

A bigger TV might be a waste of money for some, but if you’re retired, it can help your quality of life in a few ways. For starters, a bigger screen makes it easier to read numbers and small figures, which can get harder to do as you age.

A bigger TV might also significantly broaden your entertainment universe, particularly if you get a Roku TV that offers access to numerous additional channels and services, some of which are free.

Finally, a new TV might be more energy-efficient than your old one.

alvarez / Getty Imagesalvarez / Getty Images

alvarez / Getty Images

Join AARP

Joining the AARP, formerly known as the American Association of Retired Persons, only costs $16 per year but opens up a world of discounts and benefits to people aged 50 or older.

You can get cheaper movie tickets, car rentals, dental insurance and other products and services just by being a member, making that small investment a smart thing to do with your money when you retire.

Explore More: The Average Retirement Age in 2024: US vs. Italy

SolStock / iStock.comSolStock / iStock.com

SolStock / iStock.com

Travel

Many retirees have accumulated a lifetime of possessions. But as the old saying goes, “You can’t take it with you.”

Once it’s safe to start traveling again, you can start to accumulate memories and experiences rather than possessions.

Spending that travel time with friends and family can build and strengthen bonds as well, providing a fulfilling retirement.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: 27 Things Retirees Should Do With Their Money Right Now



Source: finance.yahoo.com

About the author

trending_flat
Danny Sauter, set to win District 3, had area-wide appeal

Danny Sauter leads the District 3 Supervisor race with 56 percent of the votes, leading his closest challenger Sharon Lai by 1,821 votes, according to the latest results.Though another 157,000 votes remain to be counted, ranked-choice voting experts said Sauter is unlikely to lose his commanding lead. For Lai to win, the remaining votes “would have to be very, very different to what we’ve seen so far. They have to be much more pro-Sharon,” said Jason McDaniel, San Francisco State University political science professor with a research focus on ranked-choice voting.“I don’t see that happening,” he added. Note: These results are preliminary. Table created by Kelly Waldron. Data released by the San Francisco Department of Elections on Nov. 6 at 1 a.m. Sauter, who at 36 would be one of the youngest members of the Board of Supervisors, was endorsed by […]

trending_flat
Mysterious black balls that washed up on Sydney beach were foul-smelling mini ‘fatbergs’

The mystery of the black balls that washed up on some of Sydney’s most iconic beaches last month has now been solved – and it’s more disgusting than you could ever imagine.Australian beachgoers were turned away from seven beaches last month after lifeguards spotted thousands of black spheres, prompting closures and clean-up efforts.A team of scientists at the University of New South Wales (UNSW) has revealed the black balls – initially thought to be made of tar – were actually mini “fatbergs,” made up of human feces, methamphetamine, human hair, fatty acids, and food waste, among hundreds of other vile and befuddling substances.“They smell absolutely disgusting, they smell worse than anything you’ve ever smelt,” lead investigator Associate Professor Jon Beves told CNN affiliate 9News.The New South Wales Environment Protection Authority (EPA) first warned Sydney residents to avoid swimming or touching […]

trending_flat
Daniel Lurie leads after strange and terrible election night: Analysis

It’s a shame that San Francisco’s fascinating election results can’t be viewed in isolation from the strange and terrible returns that propelled Donald Trump once more to the presidency. But the luxury of ignoring the bigger picture is something San Francisco no longer gets to do. As of a shade before 1 a.m., every last in-person vote was tabulated — 37,345 of them (20,000 provisional votes are pending). In-person voting is a bit like shaving with a straight-edge razor or knitting your own pot-holders: You could do it if you wanted to, but hardly anybody does. At present, 234,453 votes have been counted; a shade under 45 percent. The Department of Elections expects around 157,000 more votes to trickle in (including those 20,000 provisional ballots). That would result in perhaps a 75 percent turnout; San Francisco voters show up at an average […]

trending_flat
Gov. Tim Walz will face new era of divided government in Minnesota

MINNEAPOLIS (AP) — Gov. Tim Walz faces a new era of divided government when he returns home from the presidential campaign trail, now that Republicans appear to have broken the Democratic trifecta that helped put him on Kamala Harris’ radar.While Democrats will keep their one-seat majority in the Senate, leaders on both sides agree that Republicans gained enough seats in the election to tie control of the House at 67-67.According to a tally by The Associated Press, the chamber stood at 65-65 Wednesday afternoon. It would end in a 67-67 tie if the leaders of the last four undeclared races remain ahead. Two of them are so razor-thin that automatic recounts have been triggered unless lawmakers waive them.The last time the House was tied was in 1979, and the history of that legislative session suggests that power-sharing will be contentious.In […]

trending_flat
Kremlin aide says Germany car industry plight shows green transition risks

By Vladimir Soldatkin SOCHI, Russia (Reuters) - Russian industry may suffer the fate of car makers in Germany, which have shed tens of thousands of jobs, if it moves too fast to replace fossil fuels, a Kremlin adviser said on Wednesday. "The Russian Federation supports a gradual transition, a gradual transformation, so as to avoid shock scenarios on the energy markets, industrial markets," Kremlin climate envoy Ruslan Edelgeriyev told a conference in Sochi, southern Russia. "Miscalculated ambitions damaged Germany's auto industry," he said, speaking five days before the next U.N. climate change conference begins in Baku, Azerbaijan. Russia is the world's biggest exporter of natural gas and number two exporter of oil. It is one of the world's top carbon dioxide emitters along with China, the United States and India. Russia joined the Paris climate change pact in 2019, which […]

Related

trending_flat
Mysterious black balls that washed up on Sydney beach were foul-smelling mini ‘fatbergs’

The mystery of the black balls that washed up on some of Sydney’s most iconic beaches last month has now been solved – and it’s more disgusting than you could ever imagine.Australian beachgoers were turned away from seven beaches last month after lifeguards spotted thousands of black spheres, prompting closures and clean-up efforts.A team of scientists at the University of New South Wales (UNSW) has revealed the black balls – initially thought to be made of tar – were actually mini “fatbergs,” made up of human feces, methamphetamine, human hair, fatty acids, and food waste, among hundreds of other vile and befuddling substances.“They smell absolutely disgusting, they smell worse than anything you’ve ever smelt,” lead investigator Associate Professor Jon Beves told CNN affiliate 9News.The New South Wales Environment Protection Authority (EPA) first warned Sydney residents to avoid swimming or touching […]

trending_flat
Gov. Tim Walz will face new era of divided government in Minnesota

MINNEAPOLIS (AP) — Gov. Tim Walz faces a new era of divided government when he returns home from the presidential campaign trail, now that Republicans appear to have broken the Democratic trifecta that helped put him on Kamala Harris’ radar.While Democrats will keep their one-seat majority in the Senate, leaders on both sides agree that Republicans gained enough seats in the election to tie control of the House at 67-67.According to a tally by The Associated Press, the chamber stood at 65-65 Wednesday afternoon. It would end in a 67-67 tie if the leaders of the last four undeclared races remain ahead. Two of them are so razor-thin that automatic recounts have been triggered unless lawmakers waive them.The last time the House was tied was in 1979, and the history of that legislative session suggests that power-sharing will be contentious.In […]

trending_flat
Kremlin aide says Germany car industry plight shows green transition risks

By Vladimir Soldatkin SOCHI, Russia (Reuters) - Russian industry may suffer the fate of car makers in Germany, which have shed tens of thousands of jobs, if it moves too fast to replace fossil fuels, a Kremlin adviser said on Wednesday. "The Russian Federation supports a gradual transition, a gradual transformation, so as to avoid shock scenarios on the energy markets, industrial markets," Kremlin climate envoy Ruslan Edelgeriyev told a conference in Sochi, southern Russia. "Miscalculated ambitions damaged Germany's auto industry," he said, speaking five days before the next U.N. climate change conference begins in Baku, Azerbaijan. Russia is the world's biggest exporter of natural gas and number two exporter of oil. It is one of the world's top carbon dioxide emitters along with China, the United States and India. Russia joined the Paris climate change pact in 2019, which […]

trending_flat
China’s J-35A Stealth Fighter Officially Breaks Cover

China has publicly unveiled the Shenyang J-35A, a land-based stealth fighter that has been under development for some time but which had previously only been seen in unofficial and frequently poor-quality imagery. While we now have a good look at the aircraft, many questions remain, especially about the People’s Liberation Army Air Force’s (PLAAF) plans for it, since the base design was previously understood to be under development primarily for export and latterly also for carrier-based service with the PLA Navy.The first official photo of the J-35A was released today, ahead of its planned debut at the China International Aviation & Aerospace Exhibition, better known as Airshow China, held at Zhuhai Airport in Guangdong province, in southern China. The show opens on November 12.The front three-quarter view of the jet, seen taxiing, reveals several new details and sheds more light […]

trending_flat
Musk now says it’s ‘pointless’ to build a $25,000 Tesla for human drivers

By Chris Kirkham (Reuters) - When Reuters reported in April that Tesla (TSLA) had scrapped plans for a long-promised, next-generation $25,000 electric vehicle, the automaker’s stock plunged. Chief Executive Elon Musk rushed to respond on X, his social-media network. “Reuters is lying,” he posted, without elaborating. Tesla’s stock recovered some of its losses. Six months later, Musk appears to have backed into an admission that Tesla dropped its plans for a human-driven $25,000 car. He said in an Oct. 23 earnings call that building the affordable EV would be "pointless” unless the car was fully autonomous. His latest remarks came in response to an investor asking: “When can we expect Tesla to give us the $25,000 non-robotaxi regular car model?” Musk responded: “We’re not making a non-robo…,” before he was interrupted by another Tesla executive. Musk later added: “Basically, I […]

trending_flat
Tucker Carlson Bizarrely Blames Abortion For Increase In Hurricanes

If you thought Tucker Carlson couldn’t get any weirder after claiming he was “physically mauled” by a demon that left claw marks on his body, guess again.Now the former Fox News host turned Donald Trumptoadie is blaming abortions for the increase in hurricanes.Carlson made the dubious claim Monday on Steve Bannon’s “War Room” podcast during a discussion about spirituality that stemmed from his recent claim he’d been attacked by a demon.Somehow the conversation morphed into Carlson decreeing that anyone who thinks reproductive rights are a good thing is “evil” and practicing child sacrifice.Carlson then claimed that people who don’t agree with his thinking are “worshiping abortion, the killing of kids, not as something that, like, needs to happen unfortunately, but as something that is good, that’s pro-abortion.”He then proclaimed that abortion likely causes hurricanes.“I’m sure I’ll be attacked for saying […]

About Karl The Fog

Welcome to Karl The Fog, your digital gateway to the enigmatic world of San Francisco’s legendary mist. We are the storytellers, the observers, and the chroniclers of the ever-elusive, charismatic character known as Karl.

KARL THE FOG, and KARL THE FOG COFFEE logos, images, fonts, names, and other trademarks are trademarks of KARL THE FOG, LLC and may not be used without permission.

Login to enjoy full advantages

Please login or subscribe to continue.

Go Premium!

Enjoy the full advantage of the premium access.

Stop following

Unfollow Cancel

Cancel subscription

Are you sure you want to cancel your subscription? You will lose your Premium access and stored playlists.

Go back Confirm cancellation