Transitioning Into Retirement? Here Are 5 Tips for Managing Your Money
After years of working both in the home and in the workforce, many women over the age of 60 find themselves eager for retirement. But when is the right time to retire and how do you know if you can truly afford the life you have been looking forward to?
Margaret Manning gets the answers to these questions and more in this great interview with financial advisor Allan Roth.
Grab a pen and paper! You’ll want to remember these important tips for making the best financial decisions you can during the transition between working and retirement. Enjoy the show!
The Evolution of the Working Woman
Today, more than ever, women over 60 are finding themselves on the cusp of making that significant transition between being a working woman and living the life of a retiree. We have tended our homes, raised our families, and been contributing members of society while holding down jobs, volunteering for numerous charities and paving the way for generations to come. It’s no wonder that many women begin actively seeking retirement when they turn 60.
At the age of 62, women in the United States have the opportunity to start receiving social security benefits, but Allan Roth strongly advises against this and suggests that women should delay “even to the age of 70.” The reason? Simply put, most Americans find that they cannot truly afford to retire before then.
A better alternative might be to consider working part-time and putting more into savings in the years immediately preceding retirement. Not only does this transitionary time of reduced hours continue providing women with an income but it also gives women time to truly analyze their spending habits and to create a realistic budget for their post-retirement future.
5 Tips for Managing Your Money in Retirement
As the title suggests, in this interview Allan Roth gives us five tips for managing our money in retirement. Coming to the table with over 25 years of experience in corporate finance and investments, Mr. Roth gives sage advice for women approaching retirement.
While the tips are listed below, the additional information he gives about each tip is crucial to successfully planning your future, so make sure you watch our video! His five tips are:
- Take a hard look at how much you spend and how much you have saved.
- Consider delaying your social security payments.
- Invest in a Divert Annuity and a diversified portfolio.
- Work part-time.
- Make sure you can afford your passions.
Are You Ready to Change Your Financial Future?
While retirement comes with many changes, they do not have to be scary. Many women find that they no longer have the desire to accumulate “stuff” the way they once did and find themselves content with what they have. Maturity comes with age and contentment with maturity.
Simple changes such as researching prices and shopping for deals before making large purchases can mean a great deal to a budget’s bottom line without a woman having to lower her standards or sacrifice her passions. Embracing this period of transition and the challenges that come with it can help women make the wisest choices possible.
Mr. Roth also suggests what he calls “a hundred-page, incredibly simple book” called, “Can I retire?” by Mike Piper. This helpful book can be found on Amazon here or in other retail establishments.
Are you prepared for your transition to retirement? Would you be willing to work part-time after you quit your main job? If you have already retired, would you like to share your experience? Please join the conversation!