How to Save for Retirement
How to Save for Retirement
(No, You Don’t Have to Give Up Your Latte!)
By Laura Adams
I recently met with a couple in their late ‘50s—I’ll call them Tina and Bill. They have a lot on their plates, so they want to keep things as simple as possible. They’re not ready for retirement quite yet, but it’s on their minds, and they want to make sure they’re prepared.
With mounting financial and health challenges, Tina and Bill are careful about their spending. For example, both have mobile phones, but they mostly use them just to connect with family and friends through call and text. They aren’t snapping or sharing their every move and don’t need an expensive plan.
16397524 – senior couple connected with family on internet
It’s because of people like Tina and Bill that I recently partnered with TracFone to help provide important retirement information to consumers who are preparing or beginning to prepare for retirement.
Here are a few tips that will not only help Tina and Bill, but you as well:
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Clarify your retirement goals with a price tag.
Whether it’s $500,000 or $5 million—or more likely somewhere in between—there’s a number that each of us should figure out and shoot for. I recommend using a retirement planning calculator to help. There are good ones at www.AARP.org, www.fiainsights.com and www.choosetosave.org.
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Turbo charge your retirement accounts with additional catch-up contributions.
There are easy ways to do this without giving up your daily latte. If you’re currently eating dinner out three times a week, cut back to once a week and sock the extra money away. And how about packing your lunch several times a week instead of frequenting the local deli every day?
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Stay vigilant about cutting recurring costs such as your insurance, cable (do you really need those premium movie channels?), and phone plans.
When it comes to the latter, TracFone is not only affordable—it also offers a variety of devices and plans that can fit into your lifestyle while helping you save. You can depend on TracFone thanks to coverage on the nation’s best 4G LTE networks. And, with no activation or cancellation fees and Unlimited Carryover to keep any unused minutes, text and data, you can change your no-contract plan as often as your needs change, without penalties. Go to www.tracfone.com to learn more.
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Contribute more to your health savings account (HSA).
If you have an HSA-qualified health plan, use this special account to pay for future medical expenses on a pre-tax basis. A couple’s health care costs alone can run as much as $250,000 after retirement—so the sooner you start saving, the better.
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Close the “bank of mom and dad” for your grown children.
I know you love them, but they need to start taking care of themselves. There’s no reason you should be paying for their car insurance or sending them money for their electric bill.
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Stay fit and practice good health habits to avoid unnecessary medical costs.
You don’t have to join a gym to stay in shape. (It’s an unnecessary expense in my opinion when you’re trying to cut back.) There are many things you can do at home and great places to exercise outdoors—such as the track at the local high school. And when the temperatures start to dip, your local mall can offer a free indoor alternative.
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Downsize to simplify and reduce housing expenses.
If you have the flexibility, relocating to a less-expensive area is another great way to save. My husband and I recently located from the Bay Area to Austin, Texas, for exactly that reason.
Laura Adams Bio
Laura Adams, award-winning author, speaker, and national media source, helps consumers improve their personal finances by making money easy to understand.
She’s the host of the top-rated Money Girl Podcast and author of multiple books, including Money Girl’s Smart Moves to Grow Rich. Millions of readers, viewers, and listeners benefit from her advice.
Laura is frequently quoted in the national media and has been featured on FOX Business, NBC News, CBS, ABC, NPR, New York Times, USA Today, US News and World Report, Washington Post, Consumer Reports, Huffington Post, Sirius XM, and many other radio, print, and online outlets.
Laura earned an MBA from the University of Florida’s Warrington College of Business Administration and a BS from Sewanee, The University of the South. She lives with her husband in Austin, Texas.
Connect with Laura on social media:
Twitter – http://twitter.com/LauraAdams
Facebook – http://facebook.com/MoneyGirlQDT
Category: Articles, Blog, Eldercare, Retirement Planning
