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My grandfather, a World War II veteran and retired engineer, is my role model for retirement. He never worries about the costs of medical care or the rising cost of groceries because he prepared well for retirement and because he manages his spending wisely. I'm not the only one who should benefit from his wisdom, so here are a few lessons I've learned from him on post retirement finances.
Portfolio Management
My Granddad invested well during his working years, but he didn't stop upon retirement. He still manages his own investment portfolio (with the assistance of a qualified financial planner), and he reviews that portfolio every six months.
If I continue to invest my savings into retirement, I'll make money on that savings as I get older.
Sweating the Small Stuff
For my grandfather, every purchase is a study in patience and shrewd evaluation. He never buys anything without first investigating the prices at several different stores, then determining the quality of the product to maximize its longevity. He drives cars into the ground, wears shoes until they're ripping at the seams, and knows more about consumer electronics than I could ever hope to learn.
If I research products and purchase only the best quality, I'll be able to use those products longer and will therefore avoid the cost of replacement down the road.
On Sales, Clearances, and Coupons
In addition to product knowledge, Granddad goes to the store armed with coupons, advertisements, and rain checks. He might hit the grocery store three times a week, for example, so he can get the best price on milk, eggs, and deli meat. In retirement, he figures he has the time to clip coupons from Sunday's Chronicle and scour the ads for the best deals.
If I take the time to find the best deals on purchases, my retirement savings will last longer, and I'll have a better cushion in my post retirement years.
Health Matters
I've written before about my struggle with ulcerative colitis and other health problems, and up until a few years ago I rarely saw a doctor. It seemed easiest to ignore health issues and hope they resolved themselves than to address them head-on.
Granddad, on the other hand, visits the doctor whenever a problem arises. He always takes the full course of antibiotics, and he doesn't skimp on his mooring vitamin. Medical expenses for retirees can destroy an otherwise prepared individual's retirement savings, so he takes care of himself.
If I go to the doctor, take medication, and address problems as they occur, I'll be less likely to spend all my post retirement savings on health care.
Life is Short
The lessons my grandfather has taught me about post retirement finances do not all revolve around self-denial and frugality. Indeed, the most important lesson is that life is short-too short to leave it all up to chance.
He's pushing 100, and he probably didn't think he'd make it this far. But he's spent his money wisely and he doesn't worry about paying the bills. Consequently, he's able to spend money on things he wants, like a new computer or television, so he enjoys his post retirement years.
I should save now, and prepare for retirement, but I should keep recreation in mind as well. I want to have enough money to enjoy myself in retirement.
Looking Forward
I'm still quite a few years away from my own retirement, but I'm confident I'll be able to follow my grandfather's example in frugal living and smart spending.
