Autumn Years Spring 2023

FINANCIAL PLANNING

Recession-Proof Your Retirement Budget By Mary Jo Terry

ments. The price of practically every thing has gone up, meaning you are spending more in some areas and not even realizing it. The current economy is changing quickly, which means a budget redo is necessary. Take an hour to sit down and figure out exactly where your money is going, what you are saving and where you can cut costs to save a little extra. MAKE MORE MONEY If you are already struggling financially or worried about that happening in the future, an option you might consider is finding ways to make additional income. Look into work-from-home jobs or tradi tional in-office jobs that could accommo date your schedule and align with your earlier work experience. Even if the job is part time, picking up extra cash can help your budget. Fine tune some of the skills you left behind in the workplace and jump back in. (See “Self-employ ment Ideas for Seniors” on page 26.) CHECK YOUR INSURANCE COVERAGE One particular example is life insurance. If something were to happen to you, would your love one(s) be able to cover the costs of any outstanding debts, expenses, etc.? How hard would the loss of your income hurt them financially? Although these might be tough ques tions to think about, they are necessary. Because of inflation, your life insurance policy likely is not enough to help your family get by until things can get figured out. Consider upping your policy and looking into how much your family actu

DELAY SOCIAL SECURITY PAYMENTS While it might seem like a great idea to get more cash quickly, delaying receiv ing these benefits will actually mean the amount increases each month you delay taking them beyond retirement age. This means that when you do begin tak ing them, you could get a much larger monthly check. If you find yourself to be a chronic spender because of some extra money, this can be especially helpful for you. By not taking the money yet, you can prevent yourself from spending it so that you will have it on hand when/ if you really do need it. (For information relating to the timing of social security benefits, see the Fall 2022 issue.) ADJUST YOUR BUDGET Take a look at your current budget and see if it is still working for your lifestyle. Even if you made it at the beginning of the year, it likely needs some big adjust Fears of a recession are rising as it appears the Fed will continue to raise interest rates. However, while older Americans lived through and experi enced The Great Recession, many were not retired yet with an even more lim ited budget and were still in the work force when the economy crashed. Now, in early 2023, older Americans need to be cautious about how their money is spent and find ways to be more frugal with their dollar.

ally needs to live comfortably during these tough times. This investment could save a lot of trouble in the long run. PRIORITIZE YOUR DEBTS Paying off debt with a fixed interest rate should be a priority that comes later. Pay off debts with a variable interest rate first. This can help get your budget under control and save you more money in the long run. It is also a good idea to pay off some of your smallest debts first to completely rid them of your monthly expenses. This way you no longer have to make room for them in your budget, and that money can go towards other, bigger debt you need to pay off or to wards necessities. higher education, technology, client services, business development and sales/marketing. As an Executive/Owner for BMJ Partners, Inc. through the years Mary Jo has provided operations, finance, marketing, consulting and sales services to finance organizations on a national basis. Mary Jo joined Yrefy, LLC in 2017, as a founding member and Managing Partner. Yrefy’s refinances credit cards, auto deficiencies, fintech loans, personal loans and private education loans, working with customers on a national basis. Mary Jo Terry is a business tacti cian with over 20 years of strategic management experience with a diverse background in finance,

24 AUTUMN YEARS I SPRING 2023

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