Bay Cities Credit Union

05/29/2026

Happy National Smile Day from us at Bay Cities! (on Sunday)

A smile can brighten someone’s day, spark positivity, and remind us how powerful kindness can be. Today we’re celebrating the smiles that make our workplace and community a little brighter every day.

Keep smiling!

05/28/2026

𝐂𝐫𝐞𝐚𝐭𝐢𝐧𝐠 𝐚 𝐫𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐛𝐮𝐝𝐠𝐞𝐭 𝐭𝐡𝐚𝐭 𝐰𝐨𝐫𝐤𝐬

If you’re nearing retirement, many decisions are coming your way, from where you’ll live to how you’ll fill your suddenly idle hours. One of the most critical retirement decisions involves your finances.

Without a steady paycheck, you’ll be responsible for creating an income that will sustain your lifestyle. As crucial as budgeting was during your working years, having a sensible spending plan will be even more critical as you move through retirement. Here are tips to help create and follow a retirement budget that works.

𝐅𝐨𝐫𝐠𝐞𝐭 𝐭𝐡𝐞 𝟖𝟎% 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐫𝐮𝐥𝐞
The much-touted 80% rule is more of a guideline than a prediction. You might indeed spend 80% as much as you did when working, but you could need more or less depending on your retirement lifestyle. It’s best to develop a customized spending plan for your unique retirement goals.

𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐲𝐨𝐮𝐫 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐨𝐟 𝐢𝐧𝐜𝐨𝐦𝐞
Guaranteed income will play a key role in your retirement budget, and now is the time to map out your Social Security payments, pensions, and other steady sources of cash.

𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐢𝐧𝐜𝐨𝐦𝐞
It’s a good idea to check out your investment income, from capital gains on your mutual funds and dividends on your stock holdings to interest on savings accounts and certificates of deposit. Use tax returns to estimate this income or go online to look at your brokerage statements.

𝐓𝐫𝐚𝐜𝐤 𝐲𝐨𝐮𝐫 𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠
Knowing how much you’re currently spending will give you a baseline, so grab your statements and start going through your bills.

𝐀𝐝𝐣𝐮𝐬𝐭 𝐲𝐨𝐮𝐫 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐞𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬 𝐛𝐚𝐬𝐞𝐝 𝐨𝐧 𝐲𝐨𝐮𝐫 𝐩𝐨𝐬𝐭-𝐰𝐨𝐫𝐤 𝐩𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐞𝐬
Now that you have a baseline, you can adjust based on your retirement lifestyle. For example, those bills for work clothes and commuting will go away, but costs for things like hobbies and travel are likely to go up.

𝐂𝐨𝐧𝐝𝐮𝐜𝐭 𝐚 𝐭𝐫𝐢𝐚𝐥 𝐫𝐮𝐧
It never hurts to try out retirement before you leave work. Set aside your estimated monthly income, including what you expect to get from Social Security and any future pensions, then live on those amounts for a couple of months.

𝐌𝐚𝐤𝐞 𝐚𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐚𝐬 𝐧𝐞𝐞𝐝𝐞𝐝
If your trial runs smoothly, you don’t need to do another thing. However, if not, it’s time to make some adjustments.

𝐏𝐚𝐲 𝐜𝐚𝐫𝐞𝐟𝐮𝐥 𝐚𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐭𝐨 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠, 𝐞𝐬𝐩𝐞𝐜𝐢𝐚𝐥𝐥𝐲 𝐞𝐚𝐫𝐥𝐲 𝐢𝐧 𝐫𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭
Spending too much in the early years could reduce your options later, so watch your budget carefully.

𝐂𝐨𝐧𝐝𝐮𝐜𝐭 𝐚 𝐧𝐞𝐰 𝐚𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐞𝐯𝐞𝐫𝐲 𝐲𝐞𝐚𝐫
It’s important to track all your sources of income, and all your investments, on an ongoing basis. That means calculating your net worth on an annual basis and reviewing your retirement budget accordingly.

𝐌𝐚𝐤𝐞 𝐚𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐛𝐚𝐬𝐞𝐝 𝐨𝐧 𝐭𝐡𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐚𝐧𝐚𝐥𝐲𝐬𝐢𝐬
If you want to enjoy a financially secure retirement, you need to build flexibility into your plan. That means making adjustments based on your current circumstances and changing the structures of your budget as you go along.

Your retirement should include fun, relaxation, and adventure, not financial stress. To enjoy your post-work years, you’ll need to create a budget that works for you and that’s flexible enough to change with your needs but robust enough to see you through all the years of your retirement. The tips listed above can help you get started to walk away from work with confidence and never look back.

05/27/2026

𝐃𝐫𝐞𝐚𝐦 𝐢𝐭 𝐚𝐧𝐝 𝐚𝐜𝐡𝐢𝐞𝐯𝐞 𝐢𝐭: 𝐇𝐨𝐰 𝐭𝐨 𝐬𝐞𝐭 𝐚𝐧𝐝 𝐚𝐭𝐭𝐚𝐢𝐧 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐠𝐨𝐚𝐥𝐬

𝐖𝐡𝐚𝐭 𝐀𝐫𝐞 𝐘𝐨𝐮𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐆𝐨𝐚𝐥𝐬?
If you had to choose between sitting down at the kitchen table and setting goals or sitting on the beach in the Caribbean, you’d probably choose the beach. But how would you pay for the airfare? Hotel? Food? Souvenirs?

Goal setting in and of itself may not be exciting and fun, but it helps you to save for and achieve exciting and fun things, as well as things that may not be as exhilarating but are still pretty important, such as having enough money for retirement or a child’s college education. You could just wait and see what’s left over at the end of the month after you pay your bills, but since it’s easy to get in the habit of spending what you make, you may wind up having no savings if you take this approach.

Even if you’re putting money in savings, how do you know if it’s enough to get what you want when you want it by? By taking the time to think about your goals, how much they cost, when you want them accomplished, and what your regular obligations are, you’ll know exactly how much to save each month and if you need to make changes to your budget so that you can both reach your goals and pay your bills with ease.

The first step in achieving your financial goals is, not surprisingly, determining what your goals are. For right now, just think about the goals themselves and when you want to achieve them. Don’t worry about the cost just yet. Do you want to buy a new computer in a year? Have a down payment for a house in four years? Be debt free in five years?

Once you figure out what your goals are, you can then calculate how much you’ll need altogether and what you should set aside each month. How you do this depends on whether it is a short-, mid-, or long-term goal.

𝐒𝐡𝐨𝐫𝐭-𝐭𝐞𝐫𝐦 𝐆𝐨𝐚𝐥𝐬

Short-term goals are achieved in under a year. To determine the amount you will need to save for a good or service, look at what the cost is now – it is unlikely that the price will be that much different seven or eight months down the road. Once you know the total amount you need, determining the amount you need to save each month is easy – just subtract any amount you have already saved from the total cost and divide by the months until the desired achievement date.

Example 1
You would like to buy a new sofa nine months from now. You visit a few furniture stores and discover that the model you are interested in cost about $900. You have not saved anything yet. Therefore, you would want to save ($900 – $0)/9 = $100 a month.

Example 2
You would like to establish an emergency savings account within eight months. Unlike with the sofa, you can’t go to the store to determine how much you need. Instead, you want to look at what your expenses are – most experts recommend setting aside three to six months worth of essential livings expenses. You calculate your essential expenses at $1,000 a month. You would like to have five months worth of expenses in your emergency savings account and already have $1,000 in there. Therefore, you would want to save ($1,000 x 5 – $1,000)/8 = $500 a month.

𝐌𝐢𝐝-𝐭𝐞𝐫𝐦 𝐆𝐨𝐚𝐥𝐬

Mid-term goals are achieved within one to five years. To determine the total cost and amount you need to save per month, you can use the method just described for short-term goals or use the method that is described in detail in the long-term goals section. This method takes into consideration the fact that the cost of most things rises over time due to inflation and that your savings will grow beyond your contributions if you earn a return on your investments. The math for the first method is much easier, but the second gives you more accurate numbers. You don’t necessarily need to go the extra mile to consider inflation and return for goals of smaller amounts that you plan on achieving in a year or two, but you may want to do it for high-cost goals with a longer timeframe.

Example 1
You would like to take your family to Disney World in year. Currently, the cost of the vacation is $2,000. You have not saved anything for the trip yet. Using the short-term goal method, you calculate that you need to save ($2,000-$0)/12 = $167 a month. If you use the long-term goal method (assuming an inflation rate of 3% and an interest rate of 1.5% on your savings account), you would need a total of $2,060 and have to save $170 a month. As you can see, because the timeframe is short and the amount saved is small, using the first method gives you fairly accurate numbers without needing to whip out a financial calculator to do the more advanced math of the second.

Example 2
You owe $11,320 in credit card debt ($5,000 on a card with a 12% APR, $3,320 on a card with a 15% APR, and $3,000 on a card with a 19% APR). You would like to be debt free in four years. To figure out how much you should pay, you can’t just take $11,320 and divide it by 48 months – you need take into consideration the fact that you are charged interest each month on your outstanding balance. This can be done with a debt repayment calculator. One is available at www.balancepro.org/resources/calculators/credit-card-payoff-calculator/. To be debt free in four years, you will need to pay $132 on the first card, $93 on the second, and $90 on the third. (*Note: Make sure your monthly goal amount covers at least the minimum required payment.)

𝐋𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐆𝐨𝐚𝐥𝐬

Long-term goals are achieved in more than five years. When you are figuring out the total amount you need to save for a long-term goal, it is important to consider the effect of inflation, which, as mentioned previously, is the general increase in the price of goods and services over time. Ever hear someone lament about how a loaf of bread, gallon of gas, movie theater ticket, etc., only cost a quarter back in the day? Well, inflation is one of the reasons those things cost multiple quarters now.

Start by researching what the cost of the goal is now. Next, figure out the rate of inflation you will use. (You can do research on what the inflation rate has been historically for your goal, but if you can’t find anything specific, you can use the general inflation rate (typically measured with the Consumer Price Index), which in recent years has hovered around 3%. Don’t worry too much about coming up with a precise inflation rate – even economists sometimes disagree on what to use.)

Keep in mind that the cost of your goal is the after-tax amount that you need. In many cases, the taxes that you have to pay on your savings may be minimal or nonexistent. However, if you are saving the money in a tax-deferred account, like a 401(k), or expect significant earnings from a taxable investment, then it is a good idea to figure out the pre-tax amount and use that figure when calculating how much you will need to save each month. Doing this will ensure that you have enough money for both your goal and taxes. If you do not know what your tax liability will be, you may want to seek the help of a financial planner or accountant.

Once you know the total amount you need to save, you can figure out how much you should set aside each month. As discussed previously, it is a good idea to factor in the return that you expect to earn on your investments. For example, if you put money in a certificate of deposit (CD), you will be paid interest. If you invest your savings in stocks, the value of the stocks will likely increase over time, and you may also receive dividends. (Investment options are discussed in more detail later.) Some investments may come with a fixed rate of return that you know ahead of time. If what you plan to invest in doesn’t, you will have to estimate what you expect the return to be. One way to do this is to look at what the return has been in the past – past performance is not always a very good predictor of future performance, but unless you have a crystal ball, you may have no other choice.

Example 1
You plan on buying a house in seven years. You would like to have a down payment of 10%. You look at home listings on-line and see that the homes you are interested in cost around $200,000. You have already saved $5,000. A real estate agent tells you that home values in your area typically increase about 4% a year, and you plan to put your savings in a mutual fund with a historical return of 5%. The current value of the desired down payment amount is $200,000 x .1 = $20,000. You use the “What will my investment be worth in the future?” calculator to determine the down payment amount you will need in seven years. You enter today’s date in “Present date”, today’s date plus seven years in “Future date”, $20,000 in “Present value”, 4% in “Rate of return”, and leave the “Compounding period” at annual. You get an answer of $26,318.64. You then use the “How much should I save each month?” calculator to determine how much you should save each month. You enter $5,000 in “Balance at start date”, 5% in “Rate of Return”, $26,319 in “Savings goal”, and 7 in “Number of years”. You need to save $192 monthly to reach your goal.

Example 2
Your child will be going to college in 10 years. You would like to pay for half of his tuition costs. You look up the current tuition at several schools. The average is $24,000 a year. You plan to put the money in your state’s 529 college savings plan, which in the past has earned an average return of 6%. You have not saved anything yet. Future college tuition can be easily estimated with the “College Cost Projector”. The tuition inflation rate (which is typically much higher than the general inflation rate) is already provided – you just need to fill in whether it is a two- or four-year college, current one-year tuition costs, and years until matriculation (start of college). (Leave “Adjust tuition after matriculation” at yes.) Entering your information in the calculator, you get a result of $209,616.96 for the total projected tuition costs (assuming an inflation rate of 7%). Thus, the amount you want to save is $209,617 x .5 = $104,809. Using the “How much should I save each month?” calculator, you determine that you need to save $640 a month to reach your goal.

Example 3
You are planning on retiring in 35 years. Other than that, you have no idea where to begin. Determining how much you need to save for retirement is no simple task. In addition to considering inflation and rate of return on your investments, you also need to consider what you expect your expenses to be when you retire, how long you expect to live, how much taxes you will have to pay on withdrawals, and what your Social Security benefits will be (or if you even want to count on receiving Social Security). Your best bet is to use a retirement calculator (a detailed one is available on the AARP’s website) or consult with a financial advisor.

𝐇𝐨𝐰 𝐑𝐞𝐚𝐥𝐢𝐬𝐭𝐢𝐜 𝐈𝐬 𝐘𝐨𝐮𝐫 𝐆𝐨𝐚𝐥 𝐏𝐥𝐚𝐧?

After you set your goals and determine what amount you need to save each month to reach them, it is a good idea to consider if you can actually save that much each month. If you goal plan tells you to save $1,500 a month but your income is $1,700 a month, you probably can’t save $1,500 a month. To determine how realistic your goal plan is, start by listing your current income and expenses. If there is not enough money in your budget right now to save what you want for your goals, consider if you can make any changes to your income and/or spending. Can you get a part-time job? Cut back on dining out? Get a cheaper cable package? Spend less on clothing?

If you still fall short after making adjustments to your budget, you may have to rethink your goals. Is there a cheaper alternative available? (For example, you can go to a local amusement park instead of Disney World.) Can you extend the timeframe? Are there any goals that are less important that can be dropped? Maybe you would really love to buy a $5,000 garden gnome to put in your front lawn, but having enough money for retirement is a bigger priority.

𝐒𝐚𝐯𝐢𝐧𝐠𝐬

Once you have a realistic goal plan, you need to determine where your savings will go. There are three main types of investment classes:

𝐒𝐭𝐨𝐜𝐤𝐬. A share of stock represents a percentage of ownership in a corporation. In other words, if a company is divided into a million shares and you buy one share, you would own one millionth of that company. You can make money from receiving dividend payments and selling the stock for more than you bought it for. Historically, stocks have provided the greatest return long term. However, there are no guarantees – one day your stock may be worth more than what you paid for it, the next, less.

𝐁𝐨𝐧𝐝𝐬. A bond is a loan to a company or government, with you, the bondholder, as the lender. Organizations issue bonds when they want to raise funds. Generally, you receive the principal, called the par value, at maturity of the bond and interest periodically while you are holding the bond (although some only pay interest at maturity or not at all). Depending on the market, you may purchase a bond below, at, or above its par value. In general, bonds are between stocks and cash equivalents in regard to risk and return.

𝐂𝐚𝐬𝐡 𝐞𝐪𝐮𝐢𝐯𝐚𝐥𝐞𝐧𝐭𝐬. Cash equivalents are assets that can be readily converted into cash, such as savings and checking accounts, certificates of deposit, money market deposit accounts, and U.S. Treasury bills. They tend to be low-risk, so there is little or no danger that you will lose the money you deposit. As a result, cash equivalents provide a low return.

It is best to keep money for short-term goals in cash equivalents. Because you will be using the money soon, your primary concern is that you not lose any of your principal investment. If you put it in stocks, there is a good chance they could be worth less in six months. However, make sure to keep your savings separate from the checking account you use to pay for your regular expenses. If you are using a savings account, you should be able to have part of your paycheck directly deposited into it or set up a regular automatic transfer from your checking account to your savings account.

For long-term goals, the value of your investment in six months is less of a concern than inflation. The return on cash equivalents is often less than the rate of inflation, meaning if you keep your money there, its value will be essentially decreasing over time. That is why it is a good idea to put a large chunk of the money you are saving for long-term goals in stocks and bonds, which, on average, have a higher return than cash equivalents. There is a risk that the value of your investments will decrease, but the risk is lower the longer your investment period is. Inflation can be a concern for mid-term goals, but since the timeframe is shorter, you may want to be more conservative with your investment choices.

Diversification can help you reduce the risk of losing money when you invest. A well-balanced portfolio has a mixture of stocks, bonds, and cash equivalents. (What the exact percentages should be depends on how far away you are from your goals and your risk tolerance.) It is also a good idea to diversify within each type of investment class. For example, you can purchase stocks from manufacturing companies, technology-oriented companies, and financial services companies. A simple way to get diversity is to purchase shares in a mutual fund. In a mutual fund, money from several investors is pooled to buy different stocks, bonds, and/or cash equivalents.

Take advantage of tax-deferred accounts when they are available. For example, for retirement, use a 401(k) or 403(b) if your employer offers it, or you can set up a traditional IRA or Roth IRA on your own. If you are saving for your child’s higher education, you can use a Coverdell Education Savings Account or 529 plan. 401(k)s, 403(b)s, and traditional IRAs allow you to make tax-free contributions, while Roth IRAs, Coverdell Education Savings Accounts, and 529 plans allow you to make tax-free withdrawals. All of these accounts allow your earnings to grow tax free.

𝐁𝐞 𝐟𝐥𝐞𝐱𝐢𝐛𝐥𝐞
Your savings should be the first “bill” you pay each month. But what if you simply can’t put the $150 into your Maui extravaganza fund one month because your transmission blew? Resist the urge to panic, and consider it a temporary setback. With a little extra effort, you may be able to make it up over the next couple of months. Or you may be able to alter your plans or achievement date slightly. However, if you find yourself regularly unable to meet your savings goal, there may be deeper issues to contend with. Were you too optimistic with those overtime hours? Couldn’t give up smoking to save the extra $100 per month? Or perhaps the goal really wasn’t for you – you thought a new computer was vital to your happiness, but the prospect of owning it just isn’t giving you the thrill you anticipated. Revisit your goals and budget and make adjustments so that they are more achievable.

By taking the time to set financial goals, you can go from wishing to having.

05/26/2026

𝐍𝐢𝐧𝐞 𝐰𝐚𝐲𝐬 𝐭𝐨 𝐦𝐚𝐬𝐭𝐞𝐫 𝐲𝐨𝐮𝐫 𝐦𝐨𝐧𝐞𝐲

𝟏. 𝐒𝐞𝐭 𝐒.𝐌.𝐀.𝐑.𝐓. 𝐠𝐨𝐚𝐥𝐬
Saving tends to be easier when you have a certain purpose in mind: Saving for your first house, your retirement at a certain age, a child’s college education, or even a trip around the world. The important thing is for your goals to be specific, measurable, actionable, realistic and time-bound, or SMART.

To develop a sound plan, these goals must have both a time frame and a dollar amount that is MEASURABLE. Once you have listed and quantified your goals, you need to prioritize them. You may find, for example, that saving for a new home is more important than buying a new car.

Whatever your objective, be SPECIFIC. Figure out how many weeks or months there are between now and when you want to reach your target. Divide the estimated cost by the number of weeks or months to make it ACTIONABLE. That’s how much you’ll need to save each week or month to have enough money set aside. Ask yourself, is this REALISTIC? Remember, a goal is a dream with a deadline.

𝟐. 𝐏𝐚𝐲 𝐲𝐨𝐮𝐫𝐬𝐞𝐥𝐟 𝐟𝐢𝐫𝐬𝐭
Save and invest 5-10% of your gross annual income. Of course, this can be much harder than it sounds. If you’re currently living from paycheck to paycheck without any real opportunity to get ahead, begin by creating a solid spending plan after tracking all monthly expenses.

Once you figure out how you can control your discretionary spending, you can then redirect the money into a savings account. For many people, a good way to start saving regularly is to have a small amount transferred automatically from their paycheck to a savings account or mutual fund. The idea: If you don’t see it, you don’t miss it.

𝟑. 𝐌𝐚𝐢𝐧𝐭𝐚𝐢𝐧 𝐚𝐧 𝐞𝐦𝐞𝐫𝐠𝐞𝐧𝐜𝐲 𝐟𝐮𝐧𝐝
Before you commit your newfound savings to volatile and hard-to-reach investments, make sure you have at least three to six months’ worth of expenses saved in an emergency fund to see yourself through difficult times. Keeping it liquid will ensure that you don’t have to sell investments when their prices are down, and guarantee that you can always get to your money quickly.

If you have trouble deciding how much you need to keep on hand, begin by considering the standard expenses you have in a month, and then estimate all the expenses you might have in the future (possible insurance deductibles and other emergencies). Generally, if you spend a larger portion of your income on discretionary expenses that you could cut easily in a financial crisis, the less money you need to keep on hand in your emergency account. If you have dependents, you’d want to keep more money in your emergency fund to offset the greater risk.

𝟒. 𝐏𝐚𝐲 𝐨𝐟𝐟 𝐲𝐨𝐮𝐫 𝐜𝐫𝐞𝐝𝐢𝐭 𝐜𝐚𝐫𝐝 𝐝𝐞𝐛𝐭
If you’re trying to save while carrying a large credit card balance at, say, 19.8%, realize that paying off the debt is a guaranteed return of nearly 20% per year. Once you pay off your credit cards, use them only for convenience, and pay off the balance each month. If you tend to run up credit card charges, get rid of the credit card and go back to using cash, checks and a debit card.

𝟓. 𝐈𝐧𝐬𝐮𝐫𝐞 𝐲𝐨𝐮𝐫 𝐟𝐚𝐦𝐢𝐥𝐲 𝐚𝐝𝐞𝐪𝐮𝐚𝐭𝐞𝐥𝐲
A major lawsuit, unexpected illness, or accident can be financially devastating if you lack proper insurance. The key to insurance is to cover only financial losses so large that you could not cope with them and remain financially fit (known as the law of large numbers). If someone is dependent on your income, you need adequate life insurance. Long-term disability coverage is important as long as you need employment income. Also, be sure to carry adequate liability coverage on your home and auto policies.

To save on annual premiums, it might be feasible for you to raise your insurance deductible, or eliminate dual coverage. And whenever purchasing insurance – life, home, disability, or auto – be sure to shop around, and buy only from a reputable firm.

𝟔. 𝐁𝐮𝐲 𝐚 𝐡𝐨𝐦𝐞
According to the US census, since 1968, the median price of new single-family homes has gone up almost tenfold; many houses still appreciate at a rate of 6% to 8% annually. Further, home ownership entitles you to major tax breaks. Interest on first and second home mortgages is fully deductible, meaning Uncle Sam helps subsidize your property investment. Additionally, the equity in your home can be a great source of retirement income.

Through a reverse mortgage, homeowners can access the equity in their home without having to sell, and have the option of receiving monthly income for life (or chosen term) or opening up a credit line against the home’s value.

𝟕. 𝐓𝐚𝐤𝐞 𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞 𝐨𝐟 𝐭𝐚𝐱-𝐝𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬
If your employer has a tax-deferred investment plan like a 401(k) or 403(b), use it. Often, employers will match your investment. Even if they don’t, no taxes are due on your contributions or earnings until you retire and begin withdrawing the funds. Tax-deferred savings means that your investments can grow much faster than they would otherwise. The same is true of IRAs, although the maximum amount you can invest annually in an IRA is substantially less than what you can put in a 401(k) or 403(b).

𝟖. 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐲 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬
When it comes to managing risk to maximize your return, it pays to diversify. First you need to diversify among the three major asset classes: cash, stocks and bonds. Once you have decided on an allocation strategy among these three investment classes, it is important to diversify within each asset. This means buying multiple stocks within a variety of industries and holding bonds of varying maturities. Simply put, don’t put all your eggs in one basket. Also, don’t make the mistake of putting most or all of your money in “safe” investments like savings accounts, CDs and money market funds. Over the long haul, inflation and taxes will devour the purchasing power of your money in these “safe havens”.

All investments involve some trade-off between risk and return. Diversification reduces unnecessary risk by spreading your money among a variety of investments. Aside from diversification, the single most effective strategy is to invest continuously over time, with a long-term perspective.

𝟗. 𝐖𝐫𝐢𝐭𝐞 𝐚 𝐰𝐢𝐥𝐥
The simplest way to ensure that your funds, property and personal effects will be distributed according to your wishes is to prepare a will. A will is a legal document that ensures that your assets will be given to family members or other beneficiaries you designate. Having a will is especially important if you have young children because it gives you the opportunity to designate a guardian for them in the event of your death. Although wills are simple to create, about half of all Americans die intestate, or without a will. With no will to indicate your wishes, the court steps in and distributes your property according to the laws of your state. If you have no apparent heirs and die without a will, it’s even possible that the state may claim your estate.

To begin, take an inventory of your assets, outline your objectives and determine to which friends and family you wish to pass your belongings to. Then, when drafting a will, be sure to include the following: name a guardian for your children, name an executor, specify an alternate beneficiary and use a residuary clause which typically reads “I give the remainder of my estate to …” Once your will is drafted, you won’t have to think about it again unless your wishes or your financial situation changes substantially.

05/23/2026

While Memorial Day is now all about cookouts and travel, it’s the national holiday honoring military personnel who died defending our freedom; Veterans Day honors all who’ve served. Memorial Day was first recognized as “Decoration Day” in 1868, shortly after the Civil War. In 1971, it was formally made the last Monday in May. Spend at least a moment giving thanks to those who gave their lives.

05/21/2026

05/15/2026

𝐇𝐨𝐰 𝐭𝐨 𝐝𝐞𝐚𝐥 𝐰𝐢𝐭𝐡 𝐜𝐫𝐞𝐝𝐢𝐭 𝐜𝐚𝐫𝐝 𝐝𝐞𝐛𝐭 𝐨𝐧 𝐚 𝐟𝐢𝐱𝐞𝐝 𝐢𝐧𝐜𝐨𝐦𝐞

Living on a fixed income is hard for anyone, but for senior citizens, it’s especially challenging. Rising health care costs, insufficient retirement benefits, and longer life expectancies make a fixed income even more difficult. With limited dollars stretched in too many directions, many retirees have turned to credit cards to cover the shortfall. As a result, an increasing number of seniors find themselves having to repay large balances while still needing to cover necessary living expenses. However, if this sounds like you, don’t worry. You can take steps to relieve the pressure.

𝐓𝐚𝐤𝐞 𝐬𝐰𝐢𝐟𝐭 𝐚𝐜𝐭𝐢𝐨𝐧

If you are just now finding that your income is insufficient to pay what you owe, do try to deal with the problem immediately. Communicating with creditors is almost always better and easier with a positive credit history and payment record behind you. If you wait until you miss payments, the debt goes into collections, or you are in the process of being sued, your options for improving the situation decrease.

In the meantime, if you know you can’t repay what you buy on credit, try to stop charging until you can. As much as you may need the supplemental income, credit cards are really short-term loans, and if you get in over your head, high interest rates and other fees can make them extremely expensive and difficult to repay—and make the problem worse in the long run.

𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐲𝐨𝐮𝐫 𝐰𝐡𝐨𝐥𝐞 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐩𝐢𝐜𝐭𝐮𝐫𝐞

It is not uncommon for people with financial problems to overlook some possible ways to increase cash flow. So you know exactly what you have to work with, analyze your complete financial situation—you may have more to offer than you think. Your potential options may include:

𝑃𝑒𝑟𝑚𝑎𝑛𝑒𝑛𝑡 𝑙𝑖𝑓𝑒 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑝𝑜𝑙𝑖𝑐𝑦 – If you have a permanent life insurance policy in which you’ve accumulated a substantial cash value, you may consider taking a cash-surrender loan to repay all or part of your debt. You can take out up to 96 percent of the investment portion while leaving the death benefit intact. The loan does not need to be repaid; the insurance company will recoup the balance (plus interest) after you die.

𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝑎𝑛𝑑 𝑎𝑠𝑠𝑒𝑡𝑠 – Having enough money set aside for future expenses and emergencies is very important. However, if you have more than that tucked away and are holding onto high interest debt, you may consider using some of the savings to erode the balance. You may also consider selling unnecessary property too.
Employment – For some, going back to work is a reasonable and even attractive possibility to relieve a financial burden. If it is, your income may not be so fixed after all. However, if you are not able to work, do not unduly push yourself (or allow others to push you either). Your health and well being, particularly at this stage of your life, is too important to jeopardize.

𝐻𝑜𝑚𝑒 𝑒𝑞𝑢𝑖𝑡𝑦/𝑟𝑒𝑣𝑒𝑟𝑠𝑒 𝑚𝑜𝑟𝑡𝑔𝑎𝑔𝑒 – Many seniors are homeowners and have built up substantial equity in their homes. Use it to your advantage. Possibilities include selling the home and moving into a less expensive place, taking out a home equity line of credit or second mortgage, or obtaining a reverse mortgage (a loan against your home that you do not have to repay as long as you live there). Each of these options must be very cautiously considered, and entered into only after you know all of their positive and negative aspects.

Be aware that if your expenses continue to exceed your income, your problems won’t go away – they will just be delayed. The last thing you want to do is use up all of your resources, only to accumulate debt again. Be especially careful when tapping home equity. If you are unable to make the payments, you could lose your home to foreclosure.

𝐃𝐞𝐯𝐞𝐥𝐨𝐩 𝐚 𝐰𝐨𝐫𝐤𝐚𝐛𝐥𝐞 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐩𝐥𝐚𝐧

Before contacting your creditors, gain a complete understanding of your finances so you know how much you have to offer. Develop a spending plan. List how much is coming in every month, and what all of your expenses are. It is exceptionally important to be realistic and conservative with your figures.

Subtract the total of your expenses from your income. The sum you have left over (plus anything you can get from other sources, such as home equity or selling assets) is the amount you can spread out among creditors. If you are in the red or there is very little to offer, you could try going back to your spending plan and reduce certain expenses to make up for it, at least temporarily. But if your spending plan is already pared down to essentials, avoid taking it down further. On paper you may be able to trim the amount you spend on groceries, but in reality it may be neither healthy nor doable.

𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐲𝐨𝐮𝐫 𝐜𝐫𝐞𝐝𝐢𝐭𝐨𝐫𝐬

Once you have a very good idea of how much money you have to offer, it’s time to contact your creditors:

𝑊𝑟𝑖𝑡𝑒 𝑑𝑜𝑤𝑛 𝑎 𝑠𝑢𝑚𝑚𝑎𝑟𝑦 𝑜𝑓 𝑦𝑜𝑢𝑟 𝑠𝑖𝑡𝑢𝑎𝑡𝑖𝑜𝑛: how you got into debt, your inability to meet the payment, and how much you can offer for how long. Be specific and keep to the point. Notes are always helpful so you don’t get flustered or forget to mention key information.

𝐶𝑎𝑙𝑙 𝑒𝑎𝑐ℎ 𝑜𝑓 𝑦𝑜𝑢𝑟 𝑐𝑟𝑒𝑑𝑖𝑡𝑜𝑟𝑠 𝑎𝑛𝑑 𝑎𝑠𝑘 𝑡𝑜 𝑠𝑝𝑒𝑎𝑘 𝑡𝑜 𝑎 𝑚𝑎𝑛𝑎𝑔𝑒𝑟 𝑜𝑟 𝑠𝑢𝑝𝑒𝑟𝑣𝑖𝑠𝑜𝑟. Using your notes, explain your circumstances and proposed plan.

𝐵𝑒 𝑓𝑖𝑟𝑚. If the minimum payment is $150, and all you have is $50 don’t promise more than you are reasonably able to give. If you can’t meet the payment, your credibility will be harmed, making future negotiation more difficult.

𝐾𝑒𝑒𝑝 𝑎 𝑟𝑒𝑐𝑜𝑟𝑑 of the person you spoke with, what was said, and the date and time of the call.

𝐵𝑎𝑐𝑘 𝑢𝑝 𝑦𝑜𝑢𝑟 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑎𝑡𝑖𝑜𝑛 𝑤𝑖𝑡ℎ 𝑎 𝑙𝑒𝑡𝑡𝑒𝑟 𝑜𝑟 𝑒𝑚𝑎𝑖𝑙. Write to each creditor, again outlining your circumstances and proposal. Include supportive documentation and if you have agreed upon a payment arrangement, a check (never send post-dated checks). Make and keep copies of everything. Mail letters from the post office so you can send it certified mail, return receipt requested.

Do not take it personally if you receive letters and phone calls that aren’t exactly polite. It’s not against you; the creditors do not know you as an individual. They just want the money and speaking in a gruff way sometimes gets the job done. Try to not be intimidated or scared. That said, creditors should not get out of line. If so, report them to the Better Business Bureau and your state’s Attorney General, who will investigate the matter.

Owing money is never a good feeling – but when repaying it is difficult or impossible due to income limitations and high expenses, the pressure can be terrible. If you are a senior citizen living with this kind of stress, make sure you take action by exploring all of your options and offering what you can. This way you can take pride in knowing that you are doing your very best.