Investment Updates
Don't Outlive Your Money: 7 Tips
Published Wednesday, May 28, 2014 at: 7:00 AM EDT
The scariest financial risk people face in life is running out of money at an old age. I’m 83 and I’m speaking from personal experience. After a long career as a newspaper editor, I retired in 1991 at the age of 60, with my wife, who is 14 years younger and retired in 2004. I’ve learned about financial matters the hard way, and I ghost-write articles like this one to earn some extra income. I’m not scared about running out of money in my lifetime, but I am fearful of not leaving enough money to my wife, who is much younger than I. Let me share with you some financial lessons I’ve learned. Of course, these are my personal opinions, not anybody else’s.
1.DO NOT elect to take Social Security benefits early. If you do take early benefits, you probably will be shortchanged on what you would have received in total payments over the rest of your lifetime. People are living longer these days. You will add 8% a year in payment totals after full retirement age if you can wait until age 70 to take benefits.
2.Downsize your home at the earliest opportunity. Once you become an empty nester, the odds are that you do not need a house as large as the one in which you now live. Sell it and buy a smaller one. Pay cash if at all possible.
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