retirement

Frugal retirees: Go ahead, spend your money

Retirement » Frugal Retirees: Go Ahead, Spend Your Money

Ask yourself what you're afraid of
Ask yourself what you're afraid of © michaeljung/Shutterstock.com

"There are both rational and irrational reasons to be reluctant to spend," says Jeffrey R. Brown, Ph.D., a professor of finance and a retirement expert at the University of Illinois in Champaign, Ill. A rational reason might be to have enough money to cover a lengthy nursing home stay if that's ever needed, Brown says. Another one might be to send a grandchild to an expensive college someday. Less rational, he says, is hoarding assets simply because you can't bear to see your net worth decline.

Of course, even the most rational concerns can often be addressed in ways other than setting aside enough cash to pay for them with one big check. The possibility of a large nursing home bill can be insured against with a long-term care policy. Annual contributions to a grandchild's 529 plan will go a long way toward paying those college bills.

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed, 0 point 4.27%  0.03 4.30%
15 year fixed, 0 point 3.29%  0.01 3.30%
5/1 ARM 3.31%  0.02 3.33%
 
View Rates in your area Search
Product Rate Change Last week
30K FICO-based HELOC 4.75% --0.00 4.75%
50K FICO-based HELOC 4.51% --0.00 4.51%
100K FICO-based HELOC 4.24% --0.00 4.24%
 
View Rates in your area Search
Product Rate Change Last week
60 month used car loan 2.86%  0.13 2.99%
48 month used car loan 2.79%  0.12 2.91%
60 month new car loan 2.94%  0.05 2.89%
 
View Rates in your area Search
Product Rate Change Last week
1 Year CD 0.90%  0.01 0.89%
2 Year CD 1.03%  0.00 1.03%
5 Year CD 1.59% --0.00 1.59%
 
View Rates in your area Search
Product Rate Change Last week
Balance Transfer Cards 15.67%  0.04 15.71%
Cash Back Cards 16.32%  0.04 16.36%
Low Interest Cards 10.91% --0.00 10.91%
 
Search
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Thoughtful estate planning can protect both a surviving spouse and children from a previous marriage.
advertisement
Partner Center
advertisement

Connect with us