Leonard J. Hansen

Here's How in Maturity Spend less for purchases and protect assets you have

By Leonard J. Hansen

Expect your age to be an advantage when you shop for anything. And how can you better manage your money in retirement? You have asked two questions and we found the experts with the answers. Q, I seem to have month left at the end of my money. How can I buy what I need? A. Pay less for just about everything you buy if you expect and aren’t too timid to ask for the senior discount. Most businesses offer senior discounts but most are not posted. The marketing director of a major shopping center was candid: "We don’t give senior discounts because older people don’t have money; we give a discount because they do have money and can patronize our stores when we need the business." Earlier in shopping centers throughout North America the Army could hold artillery practice on Tuesdays and never hit anyone. A few centers started offering 10 percent or larger discounts on Tuesdays and mature adults came and saved, and both the stores and seniors gained. Also supermarkets discovered that mature adults shopped mainly when younger people were at work or school and so many offer senior discounts of five to 10 percent. According to our survey for this column, qualifying ages for senior discounts vary from 50 to 55, 60, 62 or 65. The days for senior discounts differ by business. Only a few will request an identification or membership card in an aging organization. Call each store where you already shop and ask not if they have a senior discount but how much is the senior discount and when is it valid. You may find immediate savings on your next shopping trip. When checking ads and considering a sale purchase, make the same type of call before you head out. Perhaps you and I on the better side of 50 don’t really want to be called senior, but swallow the pride and take the discount. Q. I am concerned that what I have in my retirement funds lasts through my life. What are the best recommendations for my protection and best life forward? A. This is a complex question which we took to Phillip E. Cook, a certified financial planner based in Torrance, Calif. "Retirees must manage their money and other assets more effectively to provide predictable income for an extended span of years," said the expert, who detailed several recommendations: Bonds: "Many mature adults have opted for assumed security and cash flow by investing exclusively in bonds, perhaps a serious mistake. Bonds are loans to a company or municipality and, depending on the economic stability of the borrower, the instruments may have higher risk than assumed, and the value of the bond when sold may be far less than its face value." Timeshares: "Buying or holding a vacation property timeshare interest may be a very bad idea for retirees. It ties up money which could be used for investment to produce income." Loans to children: "Your children may grow and move elsewhere but may still assume that they can draw money from the Bank of Mom and Dad. If you have a million dollars in assets, give or lend all you like; but if you have less than that, beware. If you reduce your assets now, there may be need to seek support from the children later, and who knows if they will have it available." Investments: "Don’t lose money by investing at too high a risk, for the chance of losing everything is all the more predictable. Be leery of promised yields of 15 percent without risk because fraud may be not possible, but probable." So, save money by spending less, and protect your assets with these words from the wise.