I'm a Retired Boomer: 5 Money Traps Worth Tempering To Make Retirement Last Decades
Anthony Damaschino, author of The Empty Nest Blueprint, is a retired baby boomer who has been smart with his retirement savings. Unlike many of his peers, he managed to avoid common traps that drain his account.
“I think the sneakier traps are often the discretionary ones,” he stated. “They do not always look reckless in the moment. They look like helping family, rewarding yourself, taking a trip, buying convenience or saying yes because you can.”
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Here are five money traps Damaschino avoids to ensure his retirement savings last decades:
1. The 'Every Day Is Saturday' Trap
Having extra time often results in spending more money to fill that time. This is why Damaschino actively avoids treating each and every day in retirement like he’s on vacation. In other words, not every afternoon can turn into eating out, shopping, buying coffee or playing golf.
2. The Adult-Child ATM Trap
Damaschino is clear: The money he saved over the years goes primarily towards supporting him and his wife for the rest of their lives. While he advocates helping your children if you have the means, he cautions doing so if you don’t.
“My retirement savings are not a family emergency/lifestyle fund,” stated Damaschino. Treating them as such would just be bad math.
3. The Full-Price Travel Trap
For many, retirement means finally having the time and money to travel the world. But travel is not cheap. Damaschinso ensures he travels off season when costs of airfare and lodging are lower. After all, he’s no longer tethered to a school or office calendar, so he takes advantage of it. To stretch his travel budget further, Damaschino books far in advance and remains flexible on exact dates.
4. The New Car Trap
Damaschino feels a reliable, used car gets him to all the same places a new car does. Best of all, it does so without lighting thousands of extra dollars on fire. Instead of spending extra money on a new car, he keeps his hard-earned cash invested in the stock market so it can compound.
5. The Grandparent Guilt Trap
“Grandchildren are wonderful, but they can also be tiny, adorable time and budget assassins,” stated Damaschinso. While he doesn’t yet have grandchildren, he is already planning ahead: He plans to be a generous, present grandparent without needing to say yes to every gift, trip, activity, lesson or college fund.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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