- Save more
Tax-free money grows fastest. Choose savings plans that offer tax savings like 401k and IRAs. Additionally, if you have health expenditures, consider putting money into a tax-free Health Savings account. These funds allow you to save money towards medical bills and pay them out of a tax-free fund as needed.
- Imaginative Investment
Choose some investments that you find interesting. Bring the fun back to investing by taking some extra money and investing in companies that you choose. Investing against the grain will send you where the equities are cheaper because buying what everyone else is buying can be expensive. Consult your financial advisor and pick their brain. That’s why you pay them.
- Cash in on Property
As you prepare for retirement, why not downsize to a more modest home that you will own outright and with your savings invest in a rental property. Rental income is like an additional retirement paycheck.
Find a great area of town or invest in a vacation property.
- Cut Cost
If you haven’t already started eliminating debt begin paying off your credit cards, lines of credit, and auto loans. If they are dwindling they should be close to gone. If you have college cost that you are contemplating tread lightly. It’s tempting to assist children and grandchildren in their college planning, but don’t access more than you can pay back prior to retirement. Accruing new debt, this close to retirement can do damage to your retirement plans so beware.
- Create a Retirement Spending Strategy
Assume that you will live longer. With the average life expectancy rising, you will need to bank on needing your fund to last well into the future. Calculate totals for all your funds and choose which need to grow longer and which can be assessed immediately. Be mindful that all the saving in the world won’t help a spendthrift. Manage your retirement savings fund by strategically accessing funds. Check your target dates for your 401k plans. Preserve your IRA wealth and spending only a percentage of your total investments. If you are in excellent health, live off three-quarters of your investment and save the rest.