3 retirement things boomers should consider purchasing

The topic of how much baby boomers should save for retirement is covered in a plethora of financial news articles and stories, but what they should actually buy is often overlooked. Unrestricted spending in retirement is undoubtedly bad, but there are things you can buy to increase your income, make your life easier, or help you save money for the future. Boomers should consider these types of purchases.

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3 Things Boomers Should Consider Buying in Retirement

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Investments

While most baby boomers know that they should diversify their portfolios when they retire, some don’t. In fact, the way some financial gurus present their calculations can unintentionally lead to the idea that investing for retirement is unnecessary.

For example, it’s common knowledge that you multiply your annual expenses by the expected length of your retirement to determine how much you need. If you want to live on $50,000 a year and expect to retire in 30 years, you’ll need $1.5 million. However, this is only true if you reduce your debt each year and don’t invest your nest egg – not even in a savings account. However, If you invest that money and earn a moderate 5% annual return, you don’t need $1.5 million to live on for 30 years; Instead, you’ll only need $775,000, or about half that amount.

Putting your money to work for you is preferable to just letting it sit there, although growing your nest egg to double what you actually need is a nice place to be. In the given case, you could finance your entire retirement for thirty years with $775,000 of your $1.5 million invested, and you would have about $725,000 left over to spend as you wish. It can lead to a wonderful retirement rather than just a fulfilling one.

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Conveniences That Make Your Life Better

If saving every dollar in retirement makes your life unpleasant, there’s no value in doing so. While you shouldn’t spend all your money on whimsical purchases, a few essentials can make a big difference in the quality of your life without going over budget.

For example, if you have mobility issues, you can purchase certain items to make your life easier. The same goes for shower bars and other attachments that reduce the chance of slipping and falling, as well as door handles that make getting in and out of the car easier. Knee braces, gel shoes, and other inexpensive gear can help prevent injuries and improve your outdoor experience if you’re still active. Having a comfortable bed can be beneficial ensure a good night’s sleep.

Things That Will Save You Money

As strange as it sounds, there are instances when making a small purchase can help you save even more. A classic example of this is insurance, especially your age. It’s a fact that as boomers age, most of them need prescription drugs, medical treatment, or possibly long-term care. Even with the largest nest fund, paying out of pocket for these things can quickly deplete it, so it’s important to have insurance that covers these costs.

For boomers, reliable transportation is another investment that pays off. After retirement, managing auto maintenance costs can be challenging, as paying for them is possible if you’re on a tight budget. Buying a reliable car is a smart approach to avoid these costs. Buying a bus, metro or rail pass is a great way to save money if you want to use public transport rather than paying for each journey as you go.

Investing in energy-efficient windows and appliances for your home can have a significant impact on your electricity bill savings over time. Another great suggestion, if you have the room, is to invest in a garden. In addition to saving you money at the grocery store on fruits and vegetables, your produce will be fresher and healthier. In addition to being a great way to spend time in your favorite pastime, gardening has many positive effects on your health and happiness.

The Bottom Line

Whatever lifestyle you pursue, there are probably accessories you can buy that will improve your quality of life at a price that far exceeds their initial cost. Likewise, you can make purchases that over time can result in significant financial savings over your initial outlay. While cutting expenses from your retirement budget is a laudable endeavor, remember that some expenses may pay off in the long run.

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