Tips for Buying a Car During Retirement
M
aybe your decades-old car finally bit the dust. Maybe your ride got totaled by a teenager on a smartphone. Or maybe you just want a new set of wheels.There are a lot of reasons why youmay find yourself looking to buy a car, and there are a lot of questions to answer before you do. The first question is, did you plan for this expense?The average American buys a new car every seven to 10 years, so if you plan on 20 years of retirement, you need to factor in at least two car purchases during that time —and possibly more. The second question is the biggest one: Where’s the money going to come from? Most people, including most retired people, will finance their new car and trade in the old one. This is a good option for people with steady retirement income, such as those drawing a pension. But it might be harder to get a loan if your income is less consistent, say, if you liquidate investment assets every month to pay the bills. Third, could you just pay cash? Most of us don’t have buckets of cash lying around, but you can always tap into an IRA or other account for the money
to buy a car. Try to do half inDecember and half in January to split the tax penalty between two years. You could also sell off two cars and use the money they generate to buy one, which will cut down on other car-related expenses as well. The last question is, what are the hidden costs? Maintenance and repairs are just part for the course, but they don’t tell you that as you age, your insurance premiums could go up, especially after that texting teenager T-boned you. Your retirement planner should have a big-picture idea of what you should plan and watch out for when you buy a car.
What have you checked off your BUCKET LIST?
Thank you to the wonderful clients who introduced us to their family and friends we were able to help this month, and to all of our clients for continuing to let us care for you. Special thanks to: George and Janet Menassa, and Holly Hidalgo If you know someone you would like to recommend to Campbell Wealth, contact us at 703-535-5300.
Are you accomplishing your bucket list goals? Let’s celebrate your accomplishments together! Send us your photos and stories from your bucket list adventures and we may feature them on our True Wealth wall in our office and/or feature them in a feature edition of the newsletter. Not only will you have the chance to inspire others, you may be inspired yourself. We look forward to your submissions!
Call Us Today (703) 535-5300 • 3
Made with FlippingBook - Online catalogs