Certain retirement purchases, such as large homes and expensive boats, are often missed by retirees. However, there are other purchases that act more like investments. Here are eight purchases every retiree should make before retirement.
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Home Improvement Items
Kimberly JC Enders, CFP at Enders Wealth Management, said one of the most common purchases she sees retirees make before they retire is home improvements. These are typically items in the $20,000 range, such as a new roof, window replacements, or repairing structural issues.
“Retiring means learning to live on a fixed income,” Enders said, “so getting all the big-ticket items purchased in the last few years of traditional employment can help iron out the difficulties when making and sticking to your job. ‘a retirement. budget.’
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While many retirees rely on Medicare for their retirement health coverage needs, Medicare does not cover most dental needs. This means a lack of coverage for procedures and supplies such as cleanings, fillings, tooth extractions, dentures and dental plates.
Retirees may be able to pay for some dental services with Medicare Part A (hospital insurance), but that only pays for hospital stays if you need to have emergency or complicated dental procedures. Enders recommends investing in major dental work before retirement begins.
Once you turn 50, you are eligible to sign up for AARP membership.
Retirees are encouraged to join AARP to gain access to member discounts, products and services. Some of these discounts apply to grocery stores, meal delivery services and online gift retailers. Additional information and resources are available through AARP to help protect your health, family and career. An AARP membership costs $12 for your first year when you sign up for automatic renewal.
From enrolling in Medicare to investing in car insurance, insurance packages are essential for retirees. These policies help protect your personal property and improve your quality of life.
Although not necessarily a purchase, retirees can consider opening a Health Savings Account (HSA) while still in the workforce. An HSA uses pretax dollars for future medical expenses, so you can take the account with you if you quit your job. It will continue to grow tax-free and can be used as a retirement account.
Retirees interested in diversifying their retirement portfolio may consider buying Treasury bonds during their early retirement years.
Treasury-issued securities, such as Series I Savings Bonds and Treasury Inflation-Protected Securities (TIPS), are not subject to interest rate fluctuations. These bonds can help protect your money, which doesn’t have much inflation protection.
When it’s time to retire, Andrew Rosen, CFP at Diversified LLC, recommends investing in a comfortable pair of athletic shoes or sneakers.
“Staying active is such an important part of your life, especially in retirement,” he said, “and having a good pair of athletic shoes will keep your feet in top shape for the kind of physical activity you you prefer, like walking or playing sports.”
A good pair of sneakers can cost anywhere from under $100 to $200 or more, but the price is worth it. It is important to stay active during your retirement, both for your physical and mental health.
Communication is essential during your retirement years. Retirees should invest in smartphones or reliable landlines. Smartphones offer retirees the ability to receive text messages and access important emails.
America the Beautiful Annual Pass
Your early years of retirement may include extensive travel to destinations across the United States, such as national parks. Enjoy the beauty of these parks on a budget by purchasing the annual America the Beautiful Pass.
You can purchase this annual pass for $80 from the US National Park Service. Each annual pass can have up to two “owners” and is valid for one year. Passholders have access to more than 2,000 recreation areas managed by five federal agencies.
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