Spending your money during your later years
“Spend your money while you can.”
That’s the message from New Zealand financial adviser Mary Holm, who recently published another book.
This message was addressed to retirees. Mrs. Holm says that she should not leave her money to her children alone.
She says she has received letters from people in their eighties and nineties who have said they wish they had traveled more when they could. Of course, they meant when they were in their sixties or seventies.
Holm is right, but it all depends on how responsible your kids are with their money. If they have a house and a retirement plan, she can stipulate that the money can go toward these things.
Doing things while you can is probably the best way to live for those who have reached retirement age and all of that requires money.
What Maria says makes sense; Helping your kids get their foot on the property ladder or into college is one thing, but if they’re irresponsible with their money, then that’s another thing entirely.
All of this highlights the importance of teaching your children financial education.
Teaching your children to invest is just as important as teaching them to save. Most people can save money, but most people save to spend rather than save to invest.
It is investing that will make life easier in the long run.
Your priorities will determine how you will spend your last years and there is no law that says you have to retire at a certain age; an eighty year old lady still worked at our local supermarket. Everyone is on her own, I suppose, but I don’t see the point of that as our country (New Zealand) is very generous to its retirees. It was only her poor health that made her stop working and then she succumbed to her illness shortly after her.
Deciding what’s important to you is all about setting goals; Anthony Robbins’ book, “Awaken the GIANT Within,” is certainly worth a read.
In the chapter on “Goal Setting,” he talks about taking the rocking chair test. If you sat in your rocking chair at the age of ninety, what would you regret in your life?
“Don’t die wondering” is a saying worth remembering. It’s important to enjoy the stage of life you’re in because there may come a day when you regret not making the most of that particular stage of life.
Planning for the future is just as important; getting that balance right is the key. There’s no point in wasting your retirement fund during your first year of retirement if it’s going to leave you poor for the remaining years. ABSTRACT
A co-worker once told us, “I can’t understand these elderly people who live frugal lives just to leave their money to someone else.” Making sacrifices to save money is understandable when you’re younger, but not when you’re past retirement age. (unless you’re living paycheck to paycheck). Live your best life now while you can and don’t just hoard your money for the younger generation to waste.