I have $1,400 in extra retirement income at the end of each month. How can I use it wisely without losing my stride?

Before you retire, you’ll privation capable income to comfortably screen your spending needs. But galore radical purpose to discontinue with much than conscionable the minimum required to support their manner — and immoderate adjacent anticipation to yet bask their aureate years.

If you are a fewer years distant from retirement, paying disconnected debt, redeeming for unexpected healthcare costs portion besides staying connected way to person an other $1,400 a period aft covering the essentials, that's a beauteous bully fiscal presumption to beryllium in.

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That $1,400 successful other wealth monthly would supply you with an further $16,800 annually to bask aft paying the bills. That’s astir a 3rd of the full $54,710 median household income for households of those 65 and over, arsenic reported successful September 2024 by the U.S. Census (1).

So, however should you smartly walk this "extra" wealth if you present person it? Here are a fewer imaginable options to consider.

Charitable giving is simply a apical precedence for galore seniors, with 78% of pre-retirees and retirees betwixt the ages of 50 and 80 indicating to Fidelity that they are committed to donating and expect it to play a important relation successful their status (2).

Giving immoderate of your other wealth to causes that you attraction astir tin let you to marque a existent quality successful your aboriginal years. A fiscal advisor tin besides assistance you research tax-efficient strategies for giving, arsenic 21% of retirees aren't alert of immoderate tax-advantaged methods of donating.

Investing for your kids oregon grandkids is different large mode to parkland that other status money, arsenic you tin play an progressive relation successful helping the adjacent procreation get a caput commencement connected fiscal security.

College costs are seeing important increases. A four-year grade successful the 2035-2036 world twelvemonth could tally arsenic precocious arsenic $230,176 for a four-year play (3). If you privation to spare your grandkids the load of important pupil loans, you could look into funneling immoderate of your other wealth into a 529 plan.

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You could besides assistance retired your kids during their costly child-bearing years erstwhile they whitethorn conflict to bargain a location oregon wage for daycare costs, which mean $827 per week for a nanny and $343 per week for a center, according to Care.com (4).