THE DOWNLOAD MONEY MATTERS
Most experts say you should expect to spend between 55% and 80% of your preretirement income in retirement, and that figure will change over time.
should expect to spend between 55% and 80% of your preretirement income in retirement, and that figure will change over time. From early to middle retirement,
most people see a decrease in expenses, especially if your mortgage is paid off and you no longer have an expensive commute. But healthcare tends to eat up a
bigger portion of retirement income as people age.
Here’s how much money retirees
spend each month on average, according to the Bureau of Labor Statistics (BLS):
Housing
Transportation Healthcare Groceries
Cash contributions
Personal insurance and pensions
Entertainment Eating out
Apparel and services Alcohol
Personal care
Miscellaneous (such as reading and tobacco products)
$1,455 $568 $562 $345 $237
$232 $197
$167 $88 $36 $51
$135 Total $4,073 Some experts recommend setting
aside a chunk of money for healthcare costs down the road. Fidelity estimates that the typical
retired couple at 65 needs $300,000 for healthcare throughout retirement.
retirement investing rather than spending.
3
Create a “fun money” account.
Allocate a fixed portion of any raise or windfall to a fun money account that you use to save for any splurge. If you get a $5,000 raise, save 10%, or $500. This helps you feel like you still get a reward.
4
Take your time making decisions. Consider implementing a waiting period for significant purchases
to assess whether they align with your long-term financial objectives. Try three days on purchases under $500 and two weeks for purchases over $500. This will give you time to reevaluate whether such an expense is worth undertaking. It also gives you extra time to save money if you decide to go ahead.
5
Regularly downsize or declutter.
Periodically assess your possessions and consider selling or donating items
you no longer need or use. 6
Implement savings creep. Pay yourself
a little more each time you get a windfall or your income rises. The simplest trick is to bump up your 401(k) allocation at work by a percentage or two. But if you are maxing out your retirement plans, open a regular nonretirement investment account, increase your savings toward your children’s education, and keep more money in the bank for emergency expenses.
LATE FEE RESPITE A new Consumer Financial
Protection Bureau (CFPB) rule caps credit card late fees at $8. That’s a $24 cut from the industry’s $32 typical charge. Forty-five million card users stand to save an average of $220 annually thanks to the new requirement. Late credit card fees exceeded $14 billion in 2022.
SPACE FOR EVERY EVENT Do you have a family reunion,
graduation party, corporate event, or prom photos coming up but your home isn’t big enough to host a party?
Peerspace.com may have the perfect place for your event. Or, if you have extra space that you’re willing to rent out for parties, you can list it on Peerspace. The site posts everything from garages and warehouses to cabins, theaters, and bars for unique event locations. Prices are listed as hourly rates and typically include a cleaning fee and any add-ons for extra amenities.
JUNE 2024 | NEWSMAX MAXLIFE 79
REALTOR FEES OUT THE WINDOW Both mortgage rates and housing
prices have remained high, making buying and selling a home dificult. But there is good news: The National Association of Realtors has abandoned rules on who pays realtor commissions and the amount. Fees could be reduced by 30% to
50%, driving down home prices and potentially saving Americans $100 million annually. Most sellers previously paid a 5%
to 6% commission to their realtor, which was split between the listing agent and the buyer’s agent. That model has essentially been thrown out the window. As a result, some realtors will slash their commissions drastically; others will try to compete by offering premium services; and some will try to maintain the current fee structure by ofloading their commissions onto buyers. Experts predict 1 million realtors may leave the industry.
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