Planning for Saving After Retirement -- ThirdAge

By Laura Bruce
Bankrate.com

Spend Less
We spend a lot of time figuring ways to save for a car, a home, college, vacations and retirement.

But it doesn't end there. You could live for 30 years or more after you retire. Even if you're lucky enough to set aside a fair amount for retirement, you may find that your needs have changed. Costs could rise more than you had estimated. You may get divorced. Or maybe you'll be bitten by the travel bug.

Saving needs to be a lifetime habit.

Here are some tips for making the most of your money after retirement.

Draft a Financial Plan
Determine where your money is coming from -- investments, retirement plans, Social Security or savings. Keep your money in tax-deferred vehicles as long as possible and tap the sources that aren't tax-deferred, such as Social Security, traditional pensions and savings.

When it comes to retirement savings, taking out 4 percent a year is a yardstick. Spend only 4 percent of what you have and you shouldn't run out of money.

Rent Before You Buy
If you're considering buying an RV or a cabin in the woods, try it out first. You might find a week or even a month a year is plenty and that it's a lot cheaper to rent that RV or cabin than to buy.

Eliminate Fees and Charges
Examine your bank and brokerage accounts that charge monthly, annual or per-item fees or commissions and see if you can get the same service from another institution for less.

Claim Senior Discounts
Take advantage of every senior discount you can find. AARP lets folks join at age 50 -- why not join? Who needs to pay retail? Ask stores that you've been patronizing if they give discounts to seniors. Many restaurants, drug stores, supermarkets and dry cleaners have senior discounts.

Shop Your Money
If you're planning on buying a certificate of deposit, opening a money market account or taking out a loan, use Bankrate's search engines to find the best rates.

Reevaluate Your Insurance Needs
Discontinue polices you may no longer need. If you bought a life insurance policy to replace income your family would have to do without if you or your spouse died, perhaps you don't need it any more since you're not drawing income. You'll have to do the math to decide if you should keep the policy in force.

Review your homeowners and vehicle polices. See if you're entitled to any discounts, or, perhaps another carrier can sell you a similar policy for less.

If you have significant assets and you're in good-enough health, you may want to buy long-term-care insurance. Elderly people who have had a stroke, heart attack or Alzheimer's are the ones who most often use this insurance.

Experts say you shouldn't buy this insurance if the premiums will make it difficult for you to pay for food, prescriptions, utilities and the like. There is no point to buying a policy unless you're going to keep up the payments for the rest of your life. Too many people buy a policy, pay the monthly premium for years, and then cancel a policy they've never used because it's too expensive.

Assess your potential needs. If your personal or family medical history worries you, it might be worth the peace of mind to buy a policy.

Be on the lookout for fraud: Unfortunately, con artists target retirees. If anything sounds too good to be true or if anyone pressures you -- "You must invest by tomorrow or I don't know if this deal will still be available ... " -- don't do it.

Talk to a Financial Planner
Just as your medical needs change as you get older, so do your financial needs. A financial planner can make sure your investments are tax-efficient, safe and meet your needs.

Bankrate.com is the Web's leading aggregator of information on financial products including mortgages, credit cards, new and used automobile loans, money market accounts, certificates of deposit, checking and ATM fees, home equity loans and online banking fees. Visit Bankrate.com to get the tools and information that can help you make the best financial decisions.