Preserving Retirement Wealth in a COVID World

With erratic markets, an economy struggling to move beyond the COVID induced slow down and continued global instability, 2021 looks like a bumpy ride for those approaching or in retirement.
While time is the healer of market dips, some of us may be concerned about having enough time to wait out market slow-downs. As someone who is deeply into work on retirement preparation, I’m watching what well known savvy investors such as Warren Buffet are doing and saying.
One piece of common sense that Buffett adheres to is not panicking and abruptly selling investments without a financial need. Buffett likes to invest in solid companies with products that people are going to use even in challenging times. He also repeatedly recommends that most people invest in S&P 500 exchange traded funds with low costs. With many companies now offering online banking and investment services we can monitor, add to or withdraw from our investment accounts from our living rooms.
Some people approaching retirement are focused on creating retirement revenue streams such as developing a group of dividend stocks. This is a hot topic online with entire Facebook groups created to discuss it such as “Dividend Growth Investing” which has about 54,000 members and “Value Investing Dividend Stocks Forever” which has about 5,600 members.
While we can’t control what happens in the stock market, watching our spending is something we control. Knowing what you can afford to spend each year, setting a budget and sticking to it can provide the needed cash to invest.
As food prices have increased, many are starting or expanding backyard gardens. Throughout the spring, summer and fall, gardens can provide herbs, greens, tomatoes, peppers, cucumbers, beans, peas and more. Besides cutting grocery costs, you don’t need to leave the house to get healthy ingredients for meals.
As we go out less, we can save money and enjoy our time by having a friend over to share our home-grown foods on our patio or balcony. We’ll be posting healthy, garden-fresh recipes here on L4 so come back to check those out.
If handy, we can do our own maintenance on our home or car. If not, another option is to trade skilled work or belongings with a friend or relative. During the pandemic peak, I traded yeast for a used webcam.
Maybe you bake delicious cookies or make amazing salads and have a friend who will change the oil in your car in exchange for your delicious treats. We can remake or repurpose things like cleaning used jars and storing dried herbs or bulk salt in them. Or cutting the bottom off a milk jug and planting seeds in it. Or set up a plant exchange with friends, trading lilies, hosta, sedum or other easily separated plants.​
Knowing what your local community offers to help 50up adults is another way to save money. This year, some communities are waiving or reducing taxes for those 65+. Rent relief may be offered. Discounted or special heating programs may be offered. The best place to start is by calling your town hall or logging onto your town’s website. Food banks are helping fill the gap for those financially struggling.
If you have experienced COVID-19 yourself, many insurance companies or local communities are picking up the cost of testing and some insurance plans are reducing treatment costs, especially for older adults. You can get vaccinated for free. Who doesn’t love free?​
Through steady, commonsense saving and investing combined with a do-it-yourself, thrifty lifestyle, retirement even in challenging times is possible. If you need help, realize there is nothing unusual with asking. Most people feel good about helping others, especially in unprecedented times of change.
 
Disclaimer: Living Loud Living Long is not a financial advisor nor an investment firm. Seek a certified financial advisor before making investment changes or deciding on a strategy.