Have you ever wondered what other seniors spend their money on? More importantly, have you ever wondered how they can afford certain things? You’ll find the answers to these questions and more right here! What is on your bucket list?
Why Is it Important?
What’s so important about knowing what seniors decide to spend their money on anyway? For starters, it’s important to other seniors because they want to have something to compare themselves to.
By looking at what other seniors spend their money on and how they afford the things they buy, you can get a clear picture of how effective your own financial decisions have been. So what do seniors spend their money on? Let’s find out!
Are You Prepared For Medical Expenses?
Although no one wants to spend thousands of dollars on medical expenses, that’s what many seniors have to do. Getting older can be challenging, and it’s common to incur frequent bills for medical care.
Another thing that many seniors spend their money on is college tuition for children and or grandchildren. Putting your children or grandchildren through college is a common aspiration of many grandparents. Of course, some do it out of necessity when their children or grandchildren don’t have the money to pay for tuition independently.
Sometimes it’s only a matter of $30,000 or so. Other times, especially when the student is attending a top school, tuition can cost over $60,000 per year. That’s a lot of money! Most grandparents are more generous than they’re given credit for.
Would You Like to Buy a Vacation Home?
Another thing that seniors commonly spend money on are vacation homes. Who hasn’t dreamed of having a second home? When you have a great pension and plenty of credit, it’s easier to qualify for a loan to buy a second home someplace warm. Then again, some folks prefer snowy slopes.
Those that are fortunate enough to afford a vacation home during their golden years have a lot of freedom. They can enjoy warm winters on the shores of the Caribbean Sea or live it up in the Rocky Mountains.
A vacation home can cost upwards of $100,000 and many vacation homes cost nearly half a million dollars. Then, of course, you have property taxes, landscaping expenses, and a possible caretaker fee.
Despite the costs, many seniors feel that having a vacation home is worth the expense. Imagine being able to escape the hustle and bustle of city life once and a while and enjoy long sunsets gazing upon open waters. That’s the kind of life that many seniors have in mind after retirement, and they’re willing to pay for it.
Do You Support Charitable Causes?
Charitable causes are prevalent among seniors. For many, donating to a charity of their choice is a way to make a difference in the world. When we get older, we start thinking about how people will remember us and what impact we made on the world.
Donating to charity is a great way to take up a noble cause and make a positive impact. Some seniors choose to donate to multiple charities. Oftentimes these charities share certain similarities.
For example, one could donate to several charities that serve to protect wildlife and the environment or helping the homeless and foodbanks. Whichever charity is important to you, know that you can make a real difference in the world.
What Do You Collect?
Millions of seniors are also avid collectors. Some collect classic cars; others collect rare old records or baseball cards. While it’s possible to collect for profit, many seniors collect for pleasure, meaning they spend money on collectibles that they do not intend to sell in their lifetime.
Who can blame them? Would you want to sell a classic ‘67 Corvette if you had one? People collect all kinds of different things. The important part about being a collector is that it means something to you. Without meaning, there is no value.
What Happens When You Have No Disposable Income?
So what happens when you’re retired and don’t have the money to spend on collectibles or vacation homes? There are options for you to consider. You could always sell valuables and family heirlooms, but people don’t typically prefer to take that approach for obvious reasons.
Have You Considered a Life Settlement?
An often overlooked approach could be to pursue a life settlement transaction. What is a life settlement? It’s a simple transaction where you could potentially make a significant amount by selling your life insurance policy to a third party. Most people are surprised to learn how their life insurance policy could be one of the most valuable assets they own.
The expert team at MRE Finance will walk you through the entire process and find a suitable buyer for your policy. MRE Finance has a FREE online life settlement calculator for you to find out your policy’s potential value in minutes by answering a few quick questions.