senior Scoops

Retire smarter

The aim of this blog is to provide tools and strategies for senior citizens to enjoy a comfortable retirement. At Senior Scoops, we believe that having a $1 million plus portfolio is not a requirement to enjoy our golden years. However, to make that statement true, we must be smart about our time and money. We need to take advantage of freebies and be prudent with our spending and investing.

In this post, I will provide 5 ideas to help make retirement savings last longer. This list is not exhaustive by any measure but does offer food for thought.

As always, I welcome your input so I can learn from your best practices. They may be included in future posts.

Let’s get started

1.Financial Education

In order to buy into any investment, including the no-risk instruments I will discuss in the next segment, it is vital to understand how they work. An investment of any type should not be entered into without a thorough understanding.

In creating this blog I heard from a lot of people who through the loss of a spouse or divorce suddenly found themselves in a position of managing their finances.

How do they get up to speed?— Reading and education.

The amount of investment advice available on the internet is massive, with some good and some terrible sources.

For beginners, a subscription to Money magazine or Kiplinger, which are both available in hard copy and online, would be a good starting point for basic personal finance information.

Once a good feel for the basics has been achieved, The Wall Street Journal, Barrons, or Forbes would be a good next step.

Tip: If you visit the subscription sites for any publication, do not purchase a subscription right away. You will see special offers pop up your Facebook feed like magic in the following days.

If you come across unfamiliar terms during your studies, Investopedia is a free website that has a terrific glossary.

Even the most experienced investors make mistakes—mitigate those with education.

2. A Brokerage Account

Let me preface this by saying that I do not advocate for the purchase or sale of any financial instrument as that is beyond my level of expertise. However, having those instruments available when needed is important, and a brokerage account is where to find them.

As I mentioned in previous posts, the rate of return at the “Big Banks” is often insulting, with returns of less than 1%. A brokerage account with companies such as Schwab, Vanguard, or Fidelity offers options that banks do not. These companies act as a clearinghouse for other institutions’ high-rate FDIC-insured CDs, which, at the time of this writing, reached 5.5% yield for a term of 12 or18 months. You can also buy Treasury Bills and US Government Bonds (A T-Bill is a US Government Bond of a year or less duration—they are both “Treasuries”) with attractive yields.

CDs, T-Bills, and US Govt. Bonds are all considered “no-risk” investments. CDs insured by FDIC-Treasuries are guaranteed by the full faith and credit of the United States. For more information on these instruments, a good source of education is the YouTube channel Diamond NestEgg. Of course, equities are also traded through a brokerage account, but that is beyond the focus of this post.

3. Library Card

Most of the publications I mentioned in the last section are available at public libraries. In addition, there are books on dividend investing, mutual funds, and ETFs. Of course, there is a wealth (no pun intended) of knowledge on almost any topic, usually available in hardcover or audio formats.

The modern library is more than just books. My local library, for example, has a podcast studio that can be reserved at no cost. During tax season, they bring in retired tax professionals to help seniors fill out their income taxes. Many libraries also offer lectures and presentations on topics of interest for both the young and old.

If you have not done so already, get a library card, spend some time there, and get on their email list. You will be surprised at how much a good library system offers.

You will also be able to get travel books that can help you out with the next must-have.

4. National Park Service-Senior Pass

If you have never stood at the rim of the Grand Canyon, hiked to Mirror Lake at Yosemite, or visited the Statue of Liberty and Ellis Island, you have done yourself a disservice. All four offer awe-inspiring experiences, all are national parks and national treasures.

The National Park Service was established in August 1916 and has since grown to encompass 423 protected sites in every state. There is something for everyone, and it’s a great bargain, especially for seniors.

The Park Service offers a Senior Pass that entitles any US citizen or legal resident aged 62 and older to lifetime entry into any National Park for a one-time fee of $80. The pass also covers three guests of the pass holder for free admission. At parks where admission is charged by the carload, one pass covers everyone, as long as it is not a commercial vehicle.

These passes can be purchased at many government locations. For more information, please visit the National Park Service website .

Please note that lost passes cannot be replaced, so take care of them!

5. A local Social Media Connection

Social media receives justified criticism for all kinds of reasons. One of the worst platforms is NextDoor, which can be brutal. What started as a community bulletin board has turned into an arena where neighbors take potshots at each other across social and political lines.

(I have written a post dedicated to NextDoor that I will post soon.)

Despite its faults, the platform serves some worthwhile functions. Firstly, it acts as a virtual garage sale. Its marketplace component is an outlet to sell anything from a home or car down to an old pair of tennis shoes. This component is ideal for selling side-hustle creations or clothing and household items that have outlived their use. I have sold dozens of items through it.

Secondly, your neighbors may look for someone to do odd jobs, which makes it a place to pick up a few bucks.

Thirdly, it is a forum to get recommendations for plumbers, hair stylists, restaurants, and other services.

Lastly, Nextdoor is a place to find out about local happenings, church functions, civic events, and neighborhood get-togethers.

If you can avoid the sniping and gossip that frequently take place in the forums, it can be a very useful tool..

The local Facebook and Craigs List pages are also useful for all the same reasons

Conclusion

We must be vigilant and always look for ways to cut expenses or make our assets work a little harder. Social Security is a helpful program that provides assistance to millions of senior citizens, but it is not sufficient. Since we are living longer, we need to make our assets last longer too. Therefore, any strategy that helps us save money without compromising our lifestyle should be welcome.

Please let me know your thoughts. What budgeting measures have worked for you?