Should You Continue to Invest After Retirement?

Written by Becky Wilcox

How much money is enough for retirement? Although that’s a common enough question, the answer may surprise you. Any number you come up with for your lifestyle will be something of an educated guess. In other words, it’s unlikely to be accurate. While it would be wonderful to establish a figure that defines a comfortable retirement, there is one problem with coming up with anything close to an accurate reckoning: the goal post keeps moving. Some variables that confound any calculation is that the rate of inflation, the cost of living, and confidence in the social security system keeps changing. In addition, with medical science making rapid advances every year, your chances of longevity keeps improving.

It’s unrealistic to simply hope to stockpile enough money to live out your retirement years. Rather than hoping you won’t outlive your money, it makes more sense to continue to generate passive income during your retirement years. Some investment vehicles that would be a good option for continuing to invest in your retirement years include precious metals, real estate investment trusts, dividend-paying stocks, US Treasury notes and bonds and Treasury inflation-protected securities.

Gold Bullion

When you invest in gold bullion, you’ll be joining a trend that has become increasingly popular during the last decade as the US debt has increased at an alarming rate. With the US national debt rising by an average of $3.8 billion a day and government borrowing at the rate of $5 billion every single business day, faith in the stability of the US dollar has been shaken. Consequently, gold is seen as a hedge against hard economic times.

People who are interested in gold bullion find it easy to buy and sell gold and appreciate the accuracy with which gold content can be verified after purchase. They believe that investing in gold has significant upsides in an uncertain economy.

Real Estate Investment Trusts

When you buy Real Estate Investment Trusts (REITs), you make money as a shareholder. REITs make money by purchasing property and then renting, leasing, and selling them. REITs are made available to the public through IPOs, or initial public offerings. After your purchase, you will be pleased to observe that 90% of a REIT’s taxable income is regularly distributed to shareholders like you.

Dividend-Paying Stocks

When you buy stocks, you will receive dividend payments. The best way to make money from your investments in stocks is to find companies that have developed an excellent reputation for increasing their dividend payments every year. These companies will continue to pump money into your bank account year after year. And, of course, as you add more shares to your portfolio, the more money you’ll make.

Municipal Bonds

When you buy municipal bonds, usually refer to as “munis,” you are lending a government entity money. A muni, then, is a debt obligation issued by a government entity to fund its diverse projects. In exchange for your loan contribution, you will receive a fixed number of interest payouts over a predetermined schedule.

U.S. Treasury Notes and Bonds

When you buy U.S. Treasury notes and bonds, you will be paid interest on a discount bond upon maturity. This is a bond that you can buy for less than its face value. You will then be paid the full value of your bond when it matures.

Treasury Inflated Protected Securities

When you buy Treasury inflated-protected securities, otherwise known as TIPS, you will benefit from inflation protection. The primary disadvantage of TIPS is that you will earn a lower interest rate than if you were to buy other types of government securities or if you were to buy credit securities. In addition, your tax bill will be higher.

In conclusion, you should continue to invest in your retirement years. Although you might expect to only spend a third of your retirement savings to cover your living expenses, this evaluation may not be accurate. In reality, much of your savings will be used to cover costs that you had not anticipated. For instance, the rise in the cost of medical expenses may be much higher than you could have predicted.

There is No Going Back

Fond memories of days gone by are a joy to replay in our mind’s eye. Whether reliving a particularly happy time in our life or recalling a rare perfect confluence of all things good, our past can be a riverbed of precious nuggets waiting to be mined. Occasionally memories might even outshine the life we currently live.Do you ever find yourself tempted to return to that special place packed with special memories to do it all again? It was so perfect – why not go back? You might stay at that same wonderful bed and breakfast, maybe even in the same room. Is that spectacular dining spot still around, perhaps with that identical table and oh-so-memorable view? Maybe you take again that same wandering path through hillside vineyards or find once more the hidden wine shop tucked inconspicuously into an obscure corner of the village. Though memories may be clear, the way back is not always.

About nine years ago my wife and I visited an off-the-beaten-path restaurant in Intragna, Switzerland. Our table was one of about fifteen spread comfortable across one large room. The food was incredible. I swear I can still taste the truffle pasta. Through the window we gazed upon a little valley speckled with brightly painted houses the air resonating with bell-clanging cows while in the distance lurked the ever present snow capped mountains. As the meal unfolded we witnessed the slow progression of a spectacular sunset painting the world a royal red before closing down the day. Service was friendly and nine years later I still remember my first sip of grappa from those foot long bottles they acrobatically poured at meal’s end.

The memory remains crystal clear, like we were just there. Talk about the perfect moment.

Last year we revisited this spot excited to relive our nostalgic experience. I think we were realistic – we did not expect such a perfect moment but were hoping for something close.  It turns out our memories far out shined current day reality. The experience was not bad it just was not a good as before.  The food was not quite as tasty, the service mediocre, and the whole vibe was a bit off. That certain magic was missing despite some near misses.

Messing with perfect memories can be a risky proposition. What are the chances the second time around will be better or even as good? You can safely assume not everything will be the same. And there is always the chance they will be worse, inferior, not worthy of special memory categorization at all. Imperfections might actually pollute that perfect picture painted years ago. Is it worth the risk?

My dad grew up in Sioux City, South Dakota. Over the years he shared many colorful stories of his life adventures, some comical, some heart rending, all near and dear to him. A few years ago he took my mom on a trip to show her his old stomping grounds. You would expect signs of “progress” over the interim fifty-plus years (aka traffic, sprawl, dirt roads converted to highways, all the wonderful ingredients of growth). Not only were most of the familiar landmarks gone, they could not even find where the old farmstead had been. Little was as it had been when dad was growing up. Fortunately they were able to hook up with my dad’s roommate from medical school so the trip was still a success. That said it was not what they had hoped.

Revisiting and attempting to relive a perfect moment is a noble pursuit. What fun it can be to plan and make arrangements to do it all over again. We do all we can to get it right, down to the smallest detail, and hope for the best. If things do not work out exactly as we hope it will not be due to any lack of trying.

Some may choose to play it safe – leave that perfect memory alone and savor it in blissful review. Break out a nice Pinot Noir, bring out those pictures and take an invigorating virtual stroll down memory lane. Ah but those were good times.

But if you decide to play it safe what about those potential new memories that will never be realized? Although our second Intragna excursion was not on par with the first, while on the trip we discovered the beauty of Thun where we took a lovely boat ride around the lake and wandered the historical streets in search of amazing pastries. Other new experiences included walking the castle wall in Lucerne overlooking the city and nearby mountains, a quick ferry across the Rhine in Basel, and a truly amazing walk among the vineyards along Lake Neuchatel. Now we can add these new special memories to our existing database.

Good memories are a wonderful thing. While we are still able to why not make as many of them as possible. Cheers 🙂

LoveBeingRetired.com

10 Best Sports for Seniors to Play

Written by James Fleming

Physical activity is important at any age, but as one gets older, there are even more reasons to keep the body moving. Studies have unquestionably linked regular exercise to a longer lifespan, proven to help prevent heart disease, dementia, obesity, and diabetes while postponing up to 40 other conditions. Not to mention that it can also be a lot of fun!

Look over the following list of sports and speak to your doctor about which ones ideally suit your current abilities.

  1. Swimming

If you suffer from arthritis or any type of joint inflammation, then swimming is as low impact as it gets. The weightless properties of the water will alleviate any pressure from your body while you still benefit from a full cardio workout. To really stretch those muscles and get your respiratory system busy, join in with some group activities, such as water aerobics, polo, and volleyball.

  1. Cycling

For those who struggle to run, cycling is a great low impact alternative with more advantages than just fast calorie burning. Cycling is also a popular method of transportation which will save you money while also lowering your carbon footprint. What’s more, it can be very enjoyable to watch the scenery gliding past you, especially if you join a club and participate in group rides!

  1. Tennis

Whether you love a game of tennis or prefer variations such as squash, badminton, or ping-pong, this sporting activity is the perfect way to improve your balance and your eye-hand coordination while zapping those calories clean off. However, the fast-paced nature of this games does require quite an intense amount of running and jumping, meaning it’s not ideal for those with joint problems. That said, if you do feel a repetitive ache coming on, look at purchasing a brace or experiment with hot and cold therapy where you apply ice packs and heat pads in alternating temperatures.

  1. Golf

You may be thankful to know that even a casual round of golf can do wonders for your overall fitness. Your lungs will appreciate the fresh air, your arms will strengthen from your swing, your brain will provide its deepest puzzle-solving skills, and you will be on your feet for an extended period of time, occasionally even walking uphill. Best of all, with your muscles stretching and your core activating, you’ll be having so much fun that you won’t even notice that you’re exercising whatsoever.

  1. Walking

Simple yet effective, some reports claim that you can get all the physical exercise you need from just 10 – 20 minutes of walking a day. Your blood flow will increase and you will shed those excess pounds without placing too much strain on your joints and ligaments. Furthermore, the fresh oxygen and beauty of the outside world are famous for increasing positive moods and clearing your cluttered thoughts right up.

  1. Dancing

If you’re going to exercise, you might as well have fun with it, right? Dancing is one of the most enjoyable ways to get a full body workout, so look out for senior classes in your area or watch online tutorials to develop this brand new skill. Your energy levels will rise, your memory will be tested to recall certain steps, and you’ll impress your friends next time you’re on the dancefloor!

  1. Lawn Bowling

This physical pastime is very popular in the retiree scene, and for good reason. The various clubs exclusively set up for seniors make for a very sociable gathering, using a bit of friendly competition to improve your balance and coordination.

  1. Tai Chi

By activating your muscles with the gentle movements of tai chi, your overall flexibility and agility will increase without threatening any joint pains or injuries. Furthermore, the mental discipline and breathing techniques required to perform this martial art will make a huge improvement to your mental state of mind too.

  1. Yoga

Yoga is another favorite form of exercise for many seniors because it ticks almost every health box without taxing the body too much whatsoever. Your core balance, muscle flexibility, and respiratory flow will all profit from the practice, while the relaxing meditative properties will help unwind a stressful mind. Look out for senior classes close to you and set out to discover your inner peace!

  1. Croquet

For a much lighter form of sporting pursuits, croquet is the perfect excuse to go outside and exercise at your own pace. This game may not be the most intense workout you’ve ever experienced, but the puzzle-solving focus required will definitely challenge your mental cogs while the social aspect should lift your spirits substantially. Even better is that this leisurely pastime can be performed in your own backyard!