This video discusses the 3 most important money skills in retirement. These money skills are so important that without them, a retiree will have a hard time maximizing their retirement experience. Most importantly, you are never too old to learn them.
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The 3 MOST IMPORTANT Money Skills Needed in Retirement
Retirement is a dream for many individuals. After years of hard work and saving, it’s finally time to sit back, relax, and enjoy the fruits of one’s labor. However, transitioning into retirement requires a certain level of financial competence and planning to ensure a worry-free and comfortable life. Here are the three most important money skills needed in retirement:
1. Budgeting and Financial Planning
Perhaps the most critical skill required during retirement is budgeting and financial planning. With a fixed income, retirees need to carefully plan and allocate their funds to cover everyday expenses, healthcare costs, leisure activities, and unforeseen emergencies. Creating a comprehensive budget that outlines all income sources and expenses will provide a clear picture of one’s financial situation and help make informed decisions.
Additionally, retirees should be aware of their income sources such as Social Security benefits, pensions, investments, and savings accounts. Understanding these income streams ensures a stable income throughout retirement. Regular reviews and adjustments to the budget are necessary to adapt to any changes in income or expenses.
2. Investment Knowledge and Risk Management
Investment knowledge is essential for retirees looking to maintain and grow their wealth. While the risk appetite may be different for retirees compared to younger investors, it is crucial to explore secure and reliable investment opportunities. Retirees should diversify their investments to reduce risk and protect their portfolio against market volatility.
Having a basic understanding of investment vehicles such as stocks, bonds, mutual funds, or real estate can help retirees make informed decisions. Seeking professional advice from financial advisors can also be beneficial in creating a well-balanced investment strategy tailored to individual needs and risk tolerance.
Additionally, retirees should be mindful of risk management. This includes having adequate insurance coverage for health, property, and assets to protect against potentially high expenses. Evaluating insurance policies regularly and adjusting coverage based on changing circumstances is crucial to ensure comprehensive protection.
3. Debt Management and Estate Planning
Debt management is an integral skill for retirees as living with high debts can quickly deplete retirement savings. It is essential to have a clear understanding of outstanding loans or credit card debts and devise a plan to minimize and eliminate them as early as possible.
Furthermore, estate planning plays a crucial role in ensuring a smooth transfer of assets and wealth to heirs after retirement. By creating a will or establishing a trust, retirees can dictate how their assets will be distributed and minimize taxation. Consulting with estate planning professionals can provide expert guidance in creating a tailored plan that aligns with one’s wishes and protects loved ones’ financial well-being.
In conclusion, retirement is a well-deserved phase of life, but it requires financial acumen and astute management of resources to live comfortably and enjoy the golden years. Budgeting and financial planning, investment knowledge and risk management, and debt management and estate planning are the three most important money skills needed in retirement. Mastering these skills will empower retirees to make informed financial decisions and ensure a secure and fulfilling retirement.
Thank you so much! You are so helpful!
Possibly, you can’t mention it, but everyone don’t forget about bartering your skills.
If you buy longterm munis currently yielding over 3%…live off the interest and budget
I will attempt rule 2 anywhere sometimes. It has even worked at Walmart on some items.
Asking for a senior discount. What do you have to lose ? You will appreciate the savings.
Dear Mr Schmidt
I have learned so much from your videos . Thank you for being the financial voice of reason .
Your calm and rationale demeanor is also appreciated .
At age 74, I love a good sale and do the effective method you discussed. It is hard to break the habit. Now I have a garage full of things i will never use. You efficient model is a plan I have to change into. Thanks!
Seriously- this is one of the best channels I've come across for retirement information and really just managing your finances in general as you can apply lots of this knowledge PRE RETIREMENT so that you have more to save / invest or maybe maximize your spending power.
Glad I found your channel. Lots of great tips.
Thank you
I'm 8-10 years from retirement, but I appreciate all of your great information! I make it a habit to listen to you regularly to become familiar with all of the details of that expected change of life. Thank you for your wisdom and clarity!
Efficient spending – except for underwear, and a few other clothes types, I normally shop at Goodwill, discount stores
There isn't much negotiation in car purchases now because of the supply issues. My son sells cars; people have to order the car and virtually everyone is payijng MSRP. At least in Illinois (where I live and my son sells cars), if you say I'm going to get the best price or hang up (paraphrase) the sales person will wish you well.
There really aren't cars on the lot waiting to be sold.
Great Schmidt. I really appreciate the simple explanation.
Very well said Jeff. Great information.
I get great deals on cars. I first decide exactly which car and which features I want. Then I pay the 30 bucks to consumer reports to give me their suggested pricing sheet for that car with those features.
My last purchase was a Jeep. Two car dealerships laughed at me and told me I’d never get that price, and tried to sell me the same car for 4k more. At the third dealership, the salesman looked at the sheet, said I’d made it easy since I had already worked out exactly what I wanted, and sold me the car for $100 LESS than the recommended price. So basically, I spent $30 to save 4k (more if you count the interest). The best part was getting a snarky phone call from the first dealership asking if I was ready to admit how unreasonable my expectations were, and was I ready to buy the car from him.
I think having the CR sheet made it much easier.
1. One rarely saves by spending. So, being disciplined at the grocery store can save a lot. Planning the weekly menu and only buying to support that menu is a big saver. Plan your menu around the weekly sales at your local price-chopper. Cut down on alcohol consumption. Finally, eating smaller portions will take off a few pounds without endangering your health. (Remember: La vie est dure, sans confiture. So buy those donuts on sale.)
2. Having a ROTH IRA can be a valuable tool for retirees. Especially for bond funds. Since your yearly interest will rarely exceed the principal amount you've converted, any interest disbursed to your checking account will be immediately tax-free even in the year of the conversion. You pay taxes on the conversion only once. With bond prices down, this is an excellent year to convert a bond or bond-fund to a ROTH. Try to get started before you begin receiving Social Security. (I won't mention that the ROTH is an excellent place within which to buy and sell options! Just don't be a pig.)
3. For a large, planned expense, like a trip, obtain a credit card with 0% APR and 12-18 months to pay. You can make the minimum payment monthly while putting the balance required into a US T Bill (in your ROTH!)
4. Best wishes and good luck!
My 12 year-old microwave worked most of the time and only sometimes acted out in the cold morning when I needed to heat my breakfast. I thought it was a good idea to get a new one with 50 percent discount. I have two microwaves now and am waiting for the old to expire. Is it an effective or efficient purchase? Or neither?
When you move your arms around.. the mic is picking up the noise of your arms against your suit. Annoying
Thank you very much. When I first bought my house, about 25 years ago, it was January, in Wisconsin. One of the people in the negations said he would pay my utility bill if it were over a few hundred dollars, because I was talking about how drafty the house was. Anyway, the bill was actually $900, which freaked me out, but, I called him, and after some complaining on his part, and my telling him I would tell everyone he was a liar, he did pay it! But, I got on the budget plan, which gives a bill that is an average over 6 months and recalculates every 6 months. Although at times I am paying more than the actual bill, I am also paying less many months, such as the winter, and I would not have been able to stay in the house if I didn't have this. I also have done a lot of insulating and caulking, myself, and that has all paid off too. I love your videos, thank you!
focus focus!!!
blbablablalaba he does not get to the point on the three important skills in retirrement!!!!
The 24 hour rule has saved me more money than anything else in my life.
Make a reasonable monthly budget AND STICK TO IT RELIGIOUSLY !
The most important money skill is too not let your emotions rule your choices
You are so sensible. Your calm demeanor and authoritative but inviting tone helps me feel less adrift in my retirement. Thank-you for your careful presentation and matter-of-fact attitude. You are appreciated. 🙂
Enjoy your videos. Helpful. Thanks.