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Everyone hopes that their reward for decades of hard work will be decades more to enjoy the fruits of their labor.
But if you ask financial guru Suze Orman, the average American is nowhere near ready. Their savings won’t last decades — they’ll last about three years.
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A recent study from Northwestern Mutual shows that while many people took advantage of the pandemic to save more, the average retirement savings dropped in 2022 from $73,000 to $62,000. And the reality is that seniors 65 and older spend an average of $46,000 a year, according to the Bureau of Labor Statistics.
If you want more than three good years, Orman’s book The Ultimate Retirement Guide for 50+ offers five key moves you can make today to set yourself up for a happy retirement.
1. Update your investing strategy
Taking a “set it and forget it” approach to your investment portfolio rarely pays off. You have to regularly revisit your portfolio and make sure it’s still in line with your financial goals and timelines.
Orman generally recommends either stocks or ETFs that pay dividends. So even if the market sees a downturn, your investments will still provide you some income. But you don’t need to get down on yourself for not knowing what approach to take — that’s what financial advisors are for.
To ensure your retirement fund is on the right track— and help you spend less time worrying about it — Vanguard will connect you with vetted financial advisors suited to your unique needs.
With a minimum portfolio size of $50,000, this service is best for clients who already have a nest egg built up but are ready to grow their wealth with a variety of different investments. All you have to do is set up a consultation with a Vanguard advisor, and they will help you set a tailored plan and stick to it.
2. Invest in a Roth IRA
Orman recommends opening a Roth IRA to avoid paying tax on withdrawals from your retirement account.
“Later on in life, you want to be able to take that money out tax-free,” she explains.
Because your contributions to a Roth account are made after tax, you won’t have to deal with deductions when you withdraw. Traditional IRAs, on the other hand, aren’t taxed when you make contributions, so you end up paying later.
Most banks and brokerage firms offer these accounts. But if you’re looking to combine the tax benefits of an IRA with a traditionally recession-resistant asset class, opening a gold IRA might be worth considering.
Many investors turn to “safe haven” assets like gold during economic and geopolitical instability to preserve their wealth.
The enthusiasm of investors has indeed propelled the price of gold to record levels with the precious metal recently surging past the $2,300 per ounce mark.
Opening a gold IRA with American Hartford Gold allows you to diversify your portfolio and grow your retirement savings simultaneously. This tax-advantaged account allows you to invest directly in physical precious metals, safeguarding your finances.
As one of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau – American Hartford Gold has helped thousands of clients protect their retirement plans.
When you sign up with American Hartford Gold, you can receive up to $15,000 in complimentary silver, along with a free investor guide to help you determine if this investment is right for you.
Read more: These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes.
3. Take a hard look at your finances
If you haven’t already, Orman says it’s time to buckle down and take a deep look through your budget.
Compare what you’re spending to what you’re saving. Trim the fat where you can and cut back on unnecessary spending so you can allocate more to your retirement savings account.
When it comes to essential expenses like home and auto insurance, you can find ways to save without sacrificing quality. For instance, regularly shopping around for better rates could shave hundreds off your annual premiums
OfficialCarInsurance makes it easy to comparison-shop for car insurance, by providing quotes from various providers based on your personal information and driving history. In just minutes, you can see if switching to a more affordable plan could be worth it.
The savings don’t have to stop at car insurance. With BestMoney, you can easily compare home insurance rates and reduce another significant monthly expense.
In less than two minutes, BestMoney scans over 200 reputable companies to find the best offers. Just provide a few details, and you’ll quickly see the coverage options available at the lowest possible cost.
One way you can start investing your spare change is through Acorns, an automated savings and investing platform. Acorns rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio of ETFs. All you have to do is link your credit or debit card, and Acorns handles the rest.
Every grocery run or gas fill-up adds up, and by letting your money work for you, you can steadily grow your retirement fund.
Sign up today and receive a $20 bonus investment to jumpstart your journey.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
