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10 Expenses That GO UP in Retirement

in this video i discuss the 10 expenses that go up when you retire coming up next i'm holy schmidt holy schmidt a few weeks ago i posted a video on expenses that go down when you retire not surprisingly a lot of people wanted to know what those expenses were so that they could see if that list applied to them or could potentially apply to them depending on their age i had a few comments from people that asked for similar video but in reverse they wanted to know what expenses go up in retirement so this video is for those people and of course you and anybody else who has an interest in the subject before we begin please make sure you click subscribe notifications so that you get alerted the next time i post a video i post about twice a week all right let's get into it number one and this is a big one is travel when people retire they have a lot more time they're not working 40 hours a week and they try to fill that time with things that they couldn't do or do as much of any way when they were working travel is a big expense particularly from the 65 to 75 year old age group because that's when folks have a lot of energy and the time and funds to engage in travel they often start working down their bucket list as it's called and they go to places like india for some of them others might just go to upstate new york many go to a destination somewhere in between while many people stop traveling at age 75 there are others that continue on into their 80s and even in their 90s so 75 is not a hard stop for anyone expense number two is utilities since you're home more you're going to be using more utilities at home you won't be at work every day so the lights remain on in the darker parts of your house you might be cooking three meals a day instead of ordering out one meal for lunch you might find that your water bill goes up because you are showering twice a day once in the morning and once before you go out or over to a friend's house the third expense is for fitness or exercise a lot of people join a health club or even a country club if you have the means that costs money and so if you're going to spend time on fitness whether it's in a club or maybe it's a new bike who knows you do have the time to spend more time exercising and taking care of yourself and a lot of people find that at this stage in their life they want to make sure that they do in fact do that point number four is on debt and debt service payments unfortunately the average retiree does have debt in fact the average retiree spends 40 percent of their income on debt service payments payments on interest and principal on credit cards primarily as a side note if you have the opportunity to enter retirement with very little or no debt that 40 percent can go to other things where you can enjoy yourself even more point number five is spending money on things like books and reading with the extra time people find that they are more engaged in activities like reading because it keeps the mind sharp and helps pass the days in a very constructive way the sixth point probably the biggest expense that goes up is health care not just the cost of your insurance but out-of-pocket costs etc as you get older you spend more time at the doctor's office you have more co-pays you have more out-of-pocket costs and you may have some things that just aren't covered and so retirees find that their health care costs go up significantly the next point is moving and relocation a lot of people move when they retire they don't stay in the house that they raise the family in they head to florida or arizona another warm climate or just into a less expensive home than the one that they raise their family in the next expense that goes up are the day-to-day expenses people have a tendency to shop a little bit more when they have free time and so some of the smaller expenses that they would avoid while they were at work they don't avoid any more number nine is charitable donations people in retirement have a tendency to focus their time on things that they love and oftentimes some of the things that they love involve charity work or charitable organizations it's not surprising that if they get involved with the charity sometimes they do work with the charity or for the charity and they donate some of their hard-earned money as well point number 10 is financial planning this one actually is not surprising at all people in retirement need to make sure that they have their numbers right both in terms of how they spend their money and where they spend their money and also what to do with it when they eventually pass a financial planner helps them with the answer to all of those questions and many many more as i mentioned beginning if you like this video please make sure you click subscribe notifications retirement information is changing fast these days and i work very hard to get what's out there and here for you this is jeff schmidt thanks for watching

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