'Should We Pay Our Rent 2 To 3 Years In Advance?' Suze Orman Says No For 'A Whole Lot Of Reasons'
A Better Approach for Retirees
Retirees looking to delay drawing down investment income may benefit more by keeping bonus funds liquid. Orman pointed out that even in volatile markets, there are ways to grow your money conservatively. "Just put it somewhere safe as your rent money, making money market interest rates," she said. "These markets still have a lot to go."
In short, tying up tens of thousands of dollars in prepaid rent isn't just unnecessary — it could limit your financial flexibility during retirement.
See Also: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die."Here’s how you can earn passive income with just $10.
Bottom Line
While paying rent years in advance might seem like a smart way to reduce future stress, Orman says it introduces too many risks. From changes in your own life to uncertainties with landlords, the safer strategy is to keep that money earning interest and available for when you need it.
As Orman put it, "That's such a waste of money — I cannot even tell you."
Read Next: Many are using retirement income calculators to check if they’re on pace — here’s a breakdown on what’s behind this formula.
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This article 'Should We Pay Our Rent 2 To 3 Years In Advance?' Suze Orman Says No For 'A Whole Lot Of Reasons' originally appeared on Benzinga.com
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