At 68, I have no investments of any kind. My $80,000 condo is paid for and I have $60,000 saved. Am I too late?
-Bernhard
It's never too late to start investing and managing your money. But I don't want to sugarcoat it. If you're planning to invest for retirement, starting to invest in your late 60s certainly limits your options. So, let's look at some of your options. (If you have additional questions about investing or retirement, This tool can help you find potential advisors..)
Consider alternative forms of income
With limited savings, you probably can't afford to ignore Social Security Benefits and other sources of income. If you have not yet used your Social Security benefit, keep in mind that waiting until age 70 will maximize the benefit you receive.
It's also worth exploring other ways to maintain income into later life. Can you continue working in your current position, find part-time employment, or work as a consultant?
Delaying full retirement It will increase your cash flow in the short term, allow you to plan for a shorter retirement period, and perhaps give you room to save and invest. (If you have additional questions about maximizing retirement income, This tool can help you find potential advisors..)
Paying off your home mortgage is great, but consider other spending cuts
The fact that you own your $80,000 condo outright is commendable. And depending on your location, there may not be many other properties in a lower price range. So you may have limited options to downsize or find a more affordable home.
But consider other moves you can make to reduce expenses When it comes to transportation, travel, food and other expenses, with minimal savings, you will need to carefully monitor your spending.
Determining the appropriate asset allocation
If you plan on your $60,000 lasting you decades until retirement, it's worth considering an appropriate investment balance that allows for both short-term liquidity, medium-term time horizons, and long-term growth. Keeping 100% of your money in cash typically won't keep you up to date. inflation and causes your savings to lose value over time.
Working with a financial advisor They can help you build a portfolio and project retirement expenses and income needs into the future. A holistic advisor can also help you analyze the tax implications of your income and retirement projections.
Depending on your financial situation, consider whether you are eligible for a financial advisor or even pro bono financial assistance from a source such as the Financial Planning Association. (If you have additional questions about investing or retirement, This tool can help you find potential advisors..)
Next steps
It's never too late to start investing, but starting to invest in your late 60s will affect your options. Consider appropriate Social Security strategies, income sources, and savings plans. asset allocationA financial advisor can help you project your investment and income plan for the coming decades.
Tips for finding a financial advisor
-
Finding a financial advisor It doesn't have to be difficult. Free SmartAsset Tool Connects you with up to three vetted financial advisors serving your area and you can interview your trusted advisors at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, Start now.
-
Consider several advisors before settling on one. It's important to make sure you find someone you trust to manage your money. As you consider your options, These are the questions you should ask an advisor to ensure you make the right decision.
-
Keep an emergency fund on hand in case unexpected expenses arise. An emergency fund should be liquid, in an account that is not exposed to significant fluctuations like the stock market. The downside is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
-
Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with potential clients and offers marketing automation solutions so you can spend more time driving conversions. Learn more about Smart Asset AMP.
Susannah Snider, CFP® is a financial planning columnist for SmartAsset who answers reader questions on personal finance topics. Do you have a question you'd like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.
Please note that Susannah is not a participant in the SmartAsset AMP platform and was an employee of SmartAsset at the time of writing this article.
Photo credit: ©Jen Barker Worley, ©iStockPhoto/Moon Safari, ©iStockPhoto/Milan Markovic
The post Ask an Advisor: “Am I Too Late?” I'm 68, have no investments, and only $60,000 in savings first appeared in Smart Assets Blog.
