I’m a Retirement Expert: The Best $200 Retirees Can Spend To Get on Track
Written by
Crystal Mayer
Edited by
Jenna Klaverweiden
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Retirees are often living on a mix of fixed income, a pinch of nest egg and a dash of Social Security benefits that may be significantly less than their former salary. Without proper planning, finances can spiral out of control, causing chaos and long-term hardship. Spending a couple of hundred dollars upfront can help retirees create a solid budget and develop a deeper understanding of their financial situation.
Here are some of the best things retirees can spend $200 on to get their finances on track, according to Christopher L. Stroup, MBA, EA, CFP, founder and president of Silicon Beach Financial.
Tax Filing Services or Tax Strategy Consultation
Many retirees are unaware of how taxes can affect their wealth or hinder their financial goals. The wrong type of retirement income plan could cost a substantial amount of money. Stroup suggested retirees look for a tax professional or financial advisor to help ensure money is saved wherever possible.
“You can spend $200 on a tax consultation with a CPA or an enrolled agent to better understand tax strategies that could save you money in retirement,” he said.
Stroup emphasized the importance of this, particularly for individuals with “complex retirement income sources (like Social Security, pensions and 401(k) withdrawals) or investments that might require advanced tax planning.” He added that some services can help you plan for making tax-advantaged withdrawals when it comes to your retirement benefits.
Long-Term Care Insurance Consultation
People often underestimate how much healthcare will cost as they age. According to The Federal Long Term Care Insurance Program, the average cost for a semi-private room in a nursing home is $100,740 per year. It is projected to increase to $159,372 over the next 20 years.
“Long-term care can be one of the largest expenses retirees face,” Stroup said. “A $200 consultation with a specialist in long-term care insurance can help you assess your need for coverage, explore policies and learn about the best options for your financial situation. Many retirees underestimate the importance of this, but it’s crucial for long-term financial planning.”
Retirement Planning Seminar or Workshop
Retirees who want a wealth of information can look into local seminars and workshops offered by financial professionals. They can get a broad overview from experienced experts for a minimal amount of money. A small lump sum investment upfront can boost your retirement savings down the road tenfold.
“Attending a live or virtual seminar focused on retirement planning can be a great investment. Many financial institutions, credit unions or independent planners offer low-cost workshops to help you understand the nuances of Social Security, Medicare, estate planning and tax-efficient retirement withdrawal strategies,” he said. “These can be valuable for building confidence as you approach retirement.”
Even More Affordable Options
For some retirees, $200 is a significant investment. Luckily, there are several more affordable options available that can still help seniors with their finances and retirement accounts.
Stroup said that for $100, retirees hoping to focus on budgeting and saving can invest in a financial planning software subscription, while those overwhelmed with debt can consider credit counseling services.
Finally, all retirees may want to take an online course to become more financially literate or meet with a Certified Financial Planner to get their affairs in order.
Caitlyn Moorhead contributed to the reporting for this article.
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