You’re done planning and saving. Your patience nets you an incredible reward: a retirement nest egg. But how do you hang onto your nest egg as long as possible? Let’s look at six classic money management tips that will prevent your delicate nest egg from going not-so-sunny-side up.
Invest (Wisely)
Your investments have paid off — and they can keep paying off if you know how to play your cards right. Take advantage of sound investments. Dividend-paying stocks and high-yield savings accounts are both excellent.
Most retirees can still afford a moderately conservative investment portfolio; there’s room to take money risks that could pay off. However, don’t do this without enough information or under proper advisement. Your nest egg should first and foremost be something you safeguard for your future financial health, not something to gamble away.
Create a Fixed-Income Budget
Stretch your nest egg by creating a fixed-income budget. It provides structure and predictability, both of which mean you can make every dollar count. Start by tracking your existing expenses and see where the money goes. You can develop a budget that matches your lifestyle once you have enough data to know what is (and isn’t) worth spending money on.
Stay in Charge of Your Finances
This doesn’t mean you can’t reach out to financial advisors when you need assistance. But leave advice to the professionals — especially when it comes to investing. Some people see your money as an opportunity for themselves. And while it’s not healthy to become paranoid that everyone’s out to get you, it’s good to acknowledge that not everyone has your best interests at heart.
Pause and Reflect
You might find yourself in unique financial situations during retirement that you didn’t necessarily plan for. Unexpected health complications are the biggest example, and it’s easy to go right to your nest egg and throw money at the problem.
But take a breath and ask yourself if that’s the best idea. Impulse purchases aren’t good for your financial well-being, but neither is rash, emotional spending. Both can cause serious problems and deplete your nest egg, so err on the side of caution and know when to wait situations out.
Stay Vigilant
Scams are booming right now, and they’re 100% shameless with how they’re targeting vulnerable groups. One of those groups is retirees. They know you have a nest egg — and they’re hoping for a piece of that golden yolk.
Unfortunately, scams are also getting more sophisticated. That means you’ll need to keep your ear to the ground to protect your finances. The average con artist is getting savvier by the second, so trust your gut and be aware of common scam efforts so you don’t become a victim.
Boost Your Nest Egg When Possible
Whether it’s monetizing your hobbies or picking up some freelance work on the side, there are always ways for you to reinforce your nest egg. Having another line of income helps take some of the stress off relying too heavily on your nest egg.
This makes it easier for you to ignore it and let it accrue more interest, or at least take less out and have a budget with more breathing room. Either scenario is great and will lead to you having a more stable and reliable financial future.
