According to a 2017 study by the CDC, Americans are living longer. While this is obviously great news, it also means we have to figure out how to live on retirement savings longer than any generation that’s come before, possibly decades longer. Here are four tips that will help you stretch those retirement dollars so all those extra years are actually quality and not just quantity.
1. Save. Save. Save. Now. Did you know the amount you can contribute to your 401k was raised by $500 for 2018? That means you can save $18,500 this year alone. Roth IRA contribution limit stays at $5,500 for those under 50, but those over 50 can contribute an additional $1,000. You can also set up a savings account or invest in a certificate of deposit (CD) and set that money aside to be used in case of emergencies like home or car repairs, anything that doesn’t necessarily have a line in the budget.
2. Get a part–time job in retirement. There’s no denying that working even a few hours a week will help you stretch your retirement savings. Working a part-time job will also help keep you connected and active, something many people struggle with after retirement.
3. Make a budget…and stick to it. Budgeting is always a good idea. It’s especially important when heading into retirement. Keeping an eye on spending can help ensure you don’t outspend your savings.
4. Check in with a professional. Before you retire, it might be a wise idea to consult a financial professional to help you plan. Someone well versed in the ins and outs of investing and saving can put you on the path to retirement independence.
No matter when you choose to retire or what that retirement looks like, following these tips could help you live out your golden years in comfort and free of financial anxieties.
At Baron Financial Group, our qualified representatives are more than happy to help people of every age and stage get the education you need to put you on the right path to pursue your individual financial goals.
Sources Forbes, Kiplinger, CNN Money, US News and World Report
Some IRA’s have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. Bank certificate of deposits are insured by an agency of the Federal government and offer a fixed rate of return whereas both the principal and yield of investment securities will fluctuate with changes in market conditions. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.