Home' Trinidad and Tobago Guardian : August 3rd 2014 Contents SBG22 PERSONAL FINANCE
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt AUGUST 3 • 2014
Don t let the financial experts
scare you. Remember, it s in
their interest for you to save
more than you really need
and then let them handle it
so they can profit from your
fears and anxieties.
Retiring on 100 per cent of your pre-retire-
ment income may be an option for one per-
centers who leave work with golden parachutes,
but it s not realistic for the rest of us. Most
of us will get by on a combination of some
retirement savings in addition to a pension if
you still have one.
Whether your nest egg is large or small,
here are ten ways to make it last:
1. Pay off debt before you retire.The first
thing to do is count up your assets and
debts. Hopefully, by the time you retire you
have more assets than debts. You should no
longer have student loans, and your mortgage
might even be paid off. Now is not the time
to take on new debt. If you have to float a big
loan to buy a new car, it s probably better to
keep the old one and fix it up.
2. Downsize your housing. Once your kids
are grown you don t need three or four
bedrooms anymore. A lot of retirees hang on
to the old place in case the kids want to move
back in. But this is a "what if," while the
expense of carrying a home is a certainty. If
your budget is limited, then move to a smaller
place in a less expensive neighbourhood with
lower taxes and smaller utility bills.
3. Get a part-time job. Many people
choose to work in retirement because
they need the money, a place to go in the
morning or some new friends. Retirees are no
longer concerned about a career, so they don t
need to stress out over promotions or work-
place politics. Think of your retirement job
like the summer job you had as a child; have
fun, make a few bucks and then go live your
life.4. Share your home. If you re single, con-
sider sharing a home with a friend or
relative. Many older houses feature mother-
in-law suites, and some newer construction
offers two master bedrooms. Two can live
cheaper than one, and this setup can offer
companionship as well.
5. Rely on friends. Don t be afraid to ask
for a favor and then offer to reciprocate.
You can save a lot of money driving each other
to the airport or the store instead of calling
a cab. Exchange yard work for housework or
financial expertise for culinary skills. Don t
think you have to pay someone to do everything
for you. Help each other out.
6. Search for free entertainment. If you
want to cruise the Mediterranean, you
may need 100 per cent of your pre-retirement
income. But most people don t do that. Your
community likely offers free summer concerts
and fall festivals. Check out your library for
free seminars, book clubs, movies and lectures.
Your church, veteran s association or social
club can provide rewarding activities, all at
little or no cost.
7. Eat out early in the day. We all like to
splurge a bit and skip a turn in the
kitchen. If you re going out for a meal, go early
in the day. Breakfast is cheaper than lunch.
Lunch is cheaper than dinner. If you insist on
dinner, go early for the senior citizen discount.
Or consider trying a place that serves breakfast
anytime. Eggs and sausage are definitely less
expensive than steak and potatoes.
8. Stop subsidising your children s
lifestyles. The old saying goes: give
your children roots and wings. You ve already
given them roots. Now it s time for wings. It
doesn t really help anyone to let them settle
into their old bedroom. They need to find
their own apartment, prepare their own meals
and learn to live on their own.
9. Take advantage of discounts. Join the
T&T Association of Retired Persons
(TTARP) for discounts as well as supplemental
medical insurance. Take a trip to town hall
and find out about real estate tax breaks and
other senior citizen discounts. Check out pro-
grammes for free transportation, low-cost
meals and subsidised health services.
10. Go international. Some people retire to
the land of their grandparents, where they
enjoy the support of family members. There
are retirement enclaves in Mexico, Costa Rica
and other Latin American countries. And a
new trend points toward Asia and countries
like Malaysia and Thailand, where the cost of
living is low and people respect the elderly.
Retiring overseas requires a lot of research,
but it s an option more budget-minded people
Source: US News and World Reports
to retire on
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