Planning for retirement involves ensuring you have enough income to cover expenses and potentially enjoy your golden years. Having an extra $1,400 a month after essentials could provide $16,800 annually for leisure. Charitable giving and investing in your family’s future are smart options for the surplus funds.

With college costs rising, contributing to a 529 plan for your grandkids can alleviate their financial burden. Investing in taxable brokerage accounts can also be beneficial for early retirement planning. Avoid succumbing to lifestyle inflation and consider using extra funds to enjoy life while maintaining financial security.

Consider what activities bring you joy in retirement, whether it’s traveling, pursuing hobbies, or dining out. Maintain a safe withdrawal rate, emergency fund, and plan for unforeseen expenses to ensure financial stability. Seek guidance from a financial advisor to explore tax-efficient strategies for giving and investment opportunities.

Sources: United States Census Bureau, Fidelity Charitable, Otium Advisory Group, Care.com.

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