After working for many years, retirement is the time to dedicate to yourself and your passions. For many retirees, they would like to dedicate their time to things other than maintaining finances. There are several steps retirees can take to simplify their finances in retirement while gaining confidence and comfortability.
Consolidate Retirement Accounts
It is common to accumulate several retirement accounts, such as 401(k)s and IRAs, throughout your career. Brighthouse Financial states, “Younger baby boomers change jobs an average 12 times during their careers, making it easy to accrue several employer-based retirement accounts.” A financial advisor can help you manage your accounts and help consolidate when appropriate. This can help reduce maintenance fees and help develop a clearer picture of asset allocation.
Review Insurance Coverage
Your needs change when you enter retirement, so you may find your insurance needs have also changed. Brighthouse explains, “For instance, you may no longer need short- or long-term disability insurance. And if you’re putting fewer miles on your car, you may also be eligible for lower car insurance premiums.” You can put these savings towards enjoying your retirement.
Set Up Automatic Payment
The process of paying bills has come a long way over the years. We have evolved from mailing a check to paying online with our credit cards. Many companies have the feature to automatically pay your bill by adding a bank account. This can help reduce how much retirees have to keep up with.
Eliminate Unnecessary Expenses
You may find yourself paying for things you no longer utilize now that you are retired. Taking a glimpse at your monthly expenses can help pinpoint things that can be cut, such as subscriptions or professional memberships.
Retirees have worked long and hard for their Golden Years. Taking a few small steps can help you organize your finances and help you feel more confident in your retirement. Simplifying your retirement can help you can spend your time doing what matters most to you.
The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice.