You work all your life to save up and have some time on your own or with your spouse. However, your expenses during retirement are more than you realize, and before you know it your savings account is empty. So how can you keep your money from disappearing in a snap? Here are 7 terrible ways that seniors are losing their savings.
1. Boiler Room Fraud
High-pressure salespeople push traditional investment opportunities with high returns, and it all seems legitimate.
But the downfall is that these securities, stocks or bonds aren't on any reputable exchange.
Often people who are ready to retire are happy to take a mild gambling hobby to a new level.
Unfortunately, many retirees lose much more than their savings. Beware -- gambling can become addicting.
3. Outright Terrible People
When you're at retiring age, you've been around and know that sometimes people legitimately need help. People call the elderly claiming to need small payments to release withheld IRS funds, and it's all a farce. Usually, this starts within the family, and the news of a helpful grandparent will travel through worse and worse levels of scam calls.
4. Trying to Play the Stock Market
Another hobby turned savings killer is playing the stock market.
Every year people lose hundreds of thousands of dollars from "playing" the market. The stock exchange is a place for investments, not getting rich quick.
5. Hidden Treasure
This issue is becoming less frequent, but avoid hiding coffee cans of cash in the back yard.
Also be sure to collect on matured bonds, and allocate secure places for your valuable collectibles.
6. "Broke" Family Members
From paying bail to paying bills, family members can make retirement miserable. Of course, caring for your family and balancing your financial needs can be a tightrope walk at any age. Always consider what's best for your financial security when making these decisions.
7. Living Outside Your Means
You can live up retirement, travel, and do new things without going broke. But you have to budget according to your monthly income and your necessary expenses too.
MORE ADVICE: Every American should collect “Federal Rent Checks”