Inflation is up. Healthcare costs keep climbing. And most of us are living longer than our parents did. It is no wonder so many in our generation are taking a hard look at their retirement savings right now.
The good news is that financial experts are seeing some smart, practical strategies that can make a real difference. Here are four of them worth knowing about.
Round Up Your Old Retirement Accounts
If you worked for several employers over the years, there is a good chance you have multiple old 401(k) accounts just sitting out there. Trevor Houston, CEO at ClearPath Wealth Strategies LLC, says retirees could have anywhere from five to ten retirement accounts open at different companies.
His recommendation is to roll all of them into a single IRA. Doing that can reduce administrative fees and help you avoid losing money to penalties from forgotten accounts. Some financial institutions even offer cash match incentives of between 1% and 5% when you roll over old 401(k) plans.
Build Income That Lasts As Long As You Do
Shavon Roman, financial advisor and chief money strategist at Heal Plan Invest, says one of the most common mistakes she sees is people leaving everything in their retirement accounts and simply hoping the money holds out. Her words: hoping that bucket of money lasts forever.
She warns that it won’t. Her solution is to take a portion of your retirement savings and put it into a lifetime annuity, an income stream that keeps paying no matter how long you live.
Keep at Least Some Money Working in the Market
Roman also says that pulling all your money out of the market and sitting on it is not the safest move it might seem. Yes, investing carries some risk. But managed carefully, she argues there is still real opportunity for your savings to grow.
Income-generating assets like dividend-paying stocks, real estate investment trusts, and bonds are worth a look. They can keep your money productive rather than just parked.
Your Health Is Your Financial Plan Too
Roman put it plainly: not being healthy is one of the most negative influences on your wallet. Healthcare is one of the biggest expenses retirees face, and much of it is tied to chronic conditions that can be managed.
Simple steps like eating a balanced diet, exercising regularly, and staying current on health screenings can protect your savings now and for years to come. Taking care of yourself, Roman says, is very much a financial strategy.