By Alan Becker
Edited by Lawndale Bilingual News
This year, has been a tough year for nearly everyone, and that may be especially true for retirees and those nearing retirement who suddenly are worried about whether their careful planning and years of saving could be upended by events beyond their control. After all, retirement is supposed to be a pleasurable and satisfying time when you kick back and enjoy the fruits of all those decades of labor. That’s difficult to do if you’re jittery about a volatile stock market, or you fret over every expenditure because you aren’t sure whether your savings can go the distance in a lengthy retirement. As this year draws to a close, and we look toward 2021, plenty of people still have worries. So, if you’re already in retirement or plan to be there soon, how can you reduce some of that financial stress that’s weighing you down in these tumultuous times? Let me offer a few ideas:
• Take control. Just stewing and letting the emotional strain rule your days and nights does no good. Instead, focus on actions you can take to help reduce some of that stress. Often, just doing something – anything – can help you feel better. Review your financial assets so you truly know where you stand. Those assets might include savings accounts, investment accounts, retirement accounts, life insurance, real property or other items. You can’t create a plan unless you know exactly where you stand, so taking stock of things should be the first step. That way you aren’t operating in the dark. And what about the “T” word? Taxes! Have you imparted tax-efficiency as a part of your retirement plan? Do you know your options when it comes to this certainty?
• Review your budget and clean up bad habits. Many of us have less-than-stellar financial habits that we developed over the years. Those patterns of behavior don’t magically disappear as you approach retirement. You need to be intentional about changing bad habits so you aren’t spending more money than you need to – or should. To help you determine the difference between necessary and discretionary spending, review the past six months to a year of expenditures. As you review your spending, think beyond all those momentary, one-time splurges. Include your regular household bills, such as utilities, cable and cell phone service. You might be able to save money through a family plan, by bundling services, or by cutting the cord altogether.
