You want to take the challenge at the age of 70? Then saving for retirement is always a great challenge.
At the age of 30, it’s easy to think to get enjoyed on buying, you even don’t think about the risk factor. But what about the rest of years?
Here are 7 tips for financial planning in your 70s.
Make early plan
Make a plan at early 50 because, retirement is hard to visualize.
Set a goal and try to save 20 to 22 percent of your income.
For example, you invest $350 to $400 per month starting at age 25 and don’t stop until you’re 62-years-old. Did you ever count it!!
If you avail 9% return during that time, you would have more than up to $1 million dollars in that account alone.
You can also invest your money on IRA or 529 plan. But you have to take the risks and you can lose money too.
If you are saving for short-term goals, consider these:
- Savings account
- Certificate of deposit (CD)
- For long-term saving goals:
- FDIC-insured individual retirement accounts (IRAs) and securities, such as stocks or mutual funds.
Set your budget carefully
No wonder, after retirement, income tends to be lower than it was in the prime earning years. Keep in mind that, the costs you cut today and turn into savings you can spend in the future.
Cut your living expenses
Big expenses like housing, food, transportation, social security, healthcare you need to plan for in retirement. Want to financially free in the long run, then you must save and you will be benefited.
Buy sufficient insurance and bonds
You can invest on various insurance like disability insurance health insurance, and car insurance.
Bank your social security
The maximum being paid out at 62, 65, and 70. But, most economical planners prescribe that you should hold up until age 70 to start accepting your Social Security benefits. There are also some drawbacks to filing at these various ages, so determining when to take these facilities.
You can continue investing some of your money in stocks even at age 60. But it is best at earlier stage like after 30. You can invest in –
- -Peer-to-peer lending.
- -Annuities and treasury notes and bonds.
- -Real estate investment trusts.
- -Dividend-paying stocks.
- -Treasury inflation-protected securities.
You could easily live another 50 or 70 years, right?
Did you ever think the difference will it make if you put off investing for a while?