If you are nearing retirement, you’re likely crunching the numbers, reining in expenses, and socking away as much cash as you can. But there are a few investments, financial experts advise, that you should consider making now:
- Dental care – Like many retirees, you may be looking to Medicare to cover basic medical needs. But Medicare does not cover dental work. If your coverage ends when you leave your job, now is the time to schedule cleanings, extractions, or any major dental work.
- A health savings account – You may want to look into opening a health savings account (HSA) while you are still in the workforce. An HSA uses pre-tax dollars toward future medical expenses, and you can take the account with you when you leave your job. It will continue to grow tax-free and may be used in retirement.
- Major home improvements – If retiring will mean living on a fixed income, this may be the time to get–and pay for–any big-ticket home improvements, such as a new roof, new flooring, or replacement windows.
- Treasury bonds – If you’re thinking about diversifying your retirement portfolio, consider purchasing treasury bonds now or in the first few years of retirement. Treasury-issued securities, such as Series I Savings Bonds and Treasury Inflation-Protected Securities (TIPS), are not subject to interest-rate swings. They may help protect your cash, which doesn’t have much inflation protection.
- A new car – Think this one through, as it deserves some careful consideration depending upon the age of your current vehicle. Paid for or not, your current car is costing you less in insurance premiums and annual license fees than a new car would–which could be a boon in retirement. Buying a new car now, on the other hand, will probably require fewer repairs in the coming years and you may be able to buy a discounted service package upfront.