This is something worth celebrating. Congratulations for all the years of hard work and now that you are getting your retirement pay, make wise use of it. Here are the best things that you can do with your money:
1. Eliminate all of your debt
Since you no longer have a regular source of income, it will be hard for you to pay for your debt in a monthly basis. Consider paying in full to eliminate interests and your worries.
2. Save for taxes
You can set aside a portion of your retirement pay for taxes. Place it on a separate savings account to make sure that you won’t be using it. Consider Certificate of Deposit accounts and set the end date a couple of months before the annual tax payment dates.
3. Continue growing your emergency fund
As you grow older, you will definitely need a lot of things. You will need medication, maintenance and consultation to different professionals. Also, you are not exempted on encountering unexpected events where you will need your money.
4. Consider using a portion for business
To make your retirement pay last, make your money grow. Try to check online to see the hottest small businesses that suits for you. If you have a passion for something such as art making, now’s the time to do it and sell your arts. You can take a small part of your retirement pay to fund this kind of business.
Try going for easy but profitable business. You may be tired to think of many things after retiring so think twice if you are going for something that’s too heavy.
Here are some businesses that you might want to consider:
- Bakery or pastry shop
- Online store
- Offline retail store
- Small restaurant or coffee shop
- Easy online jobs
5. Establish a travel fund
Off course you would want to take a trip and treat yourself and your spouse. You can use your retirement pay to fund a travel account and use it for your family’s yearly vacation.
You can now get that lifetime dream vacation. You can go around the world but if you still want it to be not that costly, check for money-saving countries to visit. It may not be the same country in your dreams, but you’ll definitely enjoy for a long time.
6. Tax-deferred account
You can deposit your retirement pay to a tax-deferred account. If you leave it there for some time, it will grow big and tax free. There is no need for you to pay tax for the dividend as well.
7. Leave your pay with your employer
This is a way of investing your money and another way for you to keep the money without being taxed. The account will remain to be tax free as it grows.
8. Make it easier for your spouse
If your spouse has been working herself to death and has not enough time for the kids, change her life now with a portion of your retirement pay. Convince her to reduce her work time and spend more of her day with you and the kids.
9. Buy something worth remembering
Buy something which could be an asset. It could be a car, jewelry, a small house or anything which has value. You can think back of your younger days when you want something that you can’t get. Buy it now and treat this as a reward to yourself for all your hard work.
10. Give back
Donate to charities or participate on helping people who were victims of calamities like flood, earthquakes and others. This is something that could give a sense of fulfillment.