Retirement

Money Management for Retirees

Your lifestyle will change in retirement, generally for the better.

But your annual income is likely to diminish sharply - your salary replaced by a mix of Social Security, corporate pension (if you are lucky), 401(k), IRAs and any other investment income you might have.

Thus, it only makes sense to monitor your budget and manage your resources carefully.

Here are some common-sense tips:

If you haven't already, develop a realistic budget of your expenses. Perhaps you can trim a bit here and there, but at least make sure you have a good idea of what you are spending every month. You can find a retirement expense calculator here: https://personal.vanguard.com/us/PlanEdu/Retirement/PEdRetEvalExpWrksht
Think long-term and stay practiced in the art of observing the market. Review your investments at least twice a year and examine the mix of your investments. Alter your plan as needed.
Be sure to remain diversified - an increasingly conservative mix of stocks, bonds, mutual funds, certificates of deposit, cash savings and so on. That will help you ride out the inevitable ebb and flow of the economy and of the markets.
Know how much money you can withdraw from your savings without depleting the fund. A calculator is available here: https://personal.vanguard.com/us/
planningeducation/retirement/PEdRetTapDetermineWDContent.jsp

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