At 68 years old, I have no investments of any kind. My $80,000 condo is paid off and I have $60,000 in savings. Is it already too late?
It’s never too late start investing and money management. But I don’t want to sugar coat it. If you’re planning to invest for retirement, your options are certainly limited if you start seriously in your late 60s. So let’s discuss some options. (If you have more questions about investing or retirement, This tool helps match you with potential advisors. )
Consider alternative forms of income
With limited savings, you probably can’t ignore it social security benefits and other sources of income. If you don’t already have Social Security benefits, keep in mind that you can maximize the benefits you receive by waiting until age 70.
It’s also worth considering other ways to preserve your income until your golden years. Can I continue working at my current workplace or seek advice for a part-time job or side job?
Postponing full retirement In the short term, your cash flow may increase, allowing you to plan for a shorter retirement period and giving you more room to save and invest. (If you have more questions about maximizing your retirement income, This tool helps match you with potential advisors. )
Paying off your home is great, but consider cutting back on other expenses too
The fact that you own an $80,000 condo outright is admirable. Also, depending on your area, there may not be many other properties in a lower price range. As a result, your options for downsizing or finding cheaper housing may be limited.
But let’s think about what else we can do. reduce expenses Regarding transportation expenses, travel expenses, food expenses, and other expenses. With minimal savings, you need to carefully monitor your spending.
If you’re ready to be matched with a local advisor who can help you reach your financial goals, Get started now.
Determining appropriate asset allocation
If you plan to use your $60,000 for decades into retirement, it’s worth evaluating the right investment balance that considers both short-term liquidity, medium-term horizon, and long-term growth. If you keep 100% of your money in cash, you typically won’t be able to keep up with your next payment. inflation And over time, your nest egg loses value.
Work with a financial advisor It can help you build a portfolio and predict your future retirement spending and income needs. A holistic advisor may also be able to help you navigate the tax implications of your income and retirement projections.
Consider whether your financial situation qualifies you to hire a financial advisor. Pro bono financial assistance From sources such as the Financial Planning Association. (If you have more questions about investing or retirement, This tool helps match you with potential advisors. )
It’s never too late to start investing, but starting in your late 60s will affect your options.Consider social security strategies, income sources, and appropriate social security asset allocation. A financial advisor may help you plan your investments and income for the next few decades.
Tips for finding a financial advisor
Find a financial advisor It doesn’t have to be difficult. SmartAsset Free Tools matches you with up to three vetted financial advisors serving your area. You can meet with an advisor for free to decide which one is right for you. Are you ready to find an advisor to help you reach your financial goals? Get started now.
Consider several advisors before deciding on one. It’s important to find someone you trust to manage your money. Considering your options, These are the questions you should ask your advisor To ensure you make the right choice.
Susannah Snider, CFP®, is SmartAsset’s financial planning columnist and answers reader questions about personal finance topics. Have a question you’d like answered? Email AskAnAdvisor@smartasset.com. Your question may be answered in a future column.
Please note that Susannah is not a participant in the SmartAdvisor Match platform and is an employee of SmartAsset.
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