Retirement Spending & Saving Tips
Start saving for retirement purchases with these helpful hints
Have you always dreamed of retiring on a beach, traveling the U.S. in an RV, or showing off a classic Ferrari in a car show? There's no reason you shouldn't spend your golden years the way you want. All you need is a little financial planning and some retirement spending tips to get you on your way.
Create a retirement savings plan and look for purchases with greater return on investment
No matter how you want to retire, it's important to start saving for the major purchases you'll make now. A high-interest savings account can help you set aside what you need, but you should also consider where your retirement spending is going. As you're saving for a purchase, ask yourself if it will be an asset to your retirement portfolio as well as enjoyable. Whether you're retired or just thinking about it, we can help you get the most out of your retirement savings account with these spending tips.
Explore the country in a recreational vehicle (RV)
For those who don't want to spend retirement tied down to one location, consider purchasing a RV and hitting the open road. An RV is an investment in a lifestyle. It provides you with the freedom to explore now that the kids are away and may save money on accommodations in the long run. Depending on whether you get a new, used or luxury model, the price of a RV can range from anywhere from $10,000 to $3 million. Size and style may also impact price, so finding something to fit your budget and needs is easy. If you're going to make this purchase, consider resale value, but more than that, consider how much your family will use it to determine the value of the investment.
Start saving for retirement renovations on your current home
Use your savings to create your dream home. Certain remodeling projects, like kitchen, bathroom and landscape updates, may also increase the value of your home.
- If you want to expand your kitchen to accommodate your culinary hobbies, investing in a kitchen remodel may just be the best recipe for retirement spending.
- If you're looking to create a private space with your significant other, consider a master suite complete with updates to bathroom fixtures, tile and décor.
- If gardening's your hobby, devoting retirement spending to landscape updates is a great investment.
Buy a classic car
Investing in a classic car with the potential to accrue value over time is not only fun, it's financially savvy. The value of classic cars spiked 19 percent in 2012 and over 25 percent in 2013. According to an index of classic cars by Historic Automobile Group International (HAGI), purchases of high-end classic automobiles like Ferraris, Lamborghinis, Jaguars, Rolls-Royces and Mercedes-Benz can help your saving for retirement pay-off.
Invest in a vacation home
Have you always wanted to live in Hawaii or spend winters skiing in the Colorado Rockies? Don't just take a vacation to your favorite spot - start saving for the purchase of a vacation home or condo when you retire. Owning a vacation home is a great investment as it will likely appreciate in value over time and can be left for heirs to enjoy.
Open a high-interest savings account to start saving for retirement
Saving for a purchase in retirement is important as it allows you to focus the majority of your existing retirement funds on everyday expenses while still having cash on hand for fun retirement spending. Talk to a Citizens Bank representative to see which retirement and money market accounts have the interest rates to better prepare you for retirement spending on hobbies and more.