Many baby boomers are ready to retire, or are planning for retirement. There are some do's and dont's when it comes to how to spend your savings.
Edgar Norton, Director of Illinois State University's Institute for Financial Planning and Analysis, said the average 65-year old couple will spend about $250,000 on health care. (More on health care expenses coming in part 2.)
- Property taxes: Even if you've paid off your mortgage, you will still have annual expenses related to homeownership. Make sure you plan for these.
- Travel: Expenses for vacation and hobbies go up, especially early in retirement.
- Automotive Expenses: You'll need to pay for these and if you trade your vehicles often, that costs too.
- Dependent Expenses: Direct funding for children may not be an issue, but you might have grandchildren for whom you want to purchase life insurance policies or college nest eggs.
- Increase your earnings potential: Consider a part-time job in addition to leisure activities or volunteer work.