I am 58 this year and am at a loss as to what to do or how to plan for my retirement. Only a small amount of money was invested through previous employers, and I’m not sure how to save now that I’m self-employed. I am really worried about my pension but I don’t know where to find good and reliable help.
– Harold
You are not alone – most Americans are. Behind on retirement savings. Good to hear you have. some Money invested in previous employers’ retirement plans, but there’s a lot more you can do, and really should. Let’s look at some of your options.
A financial advisor will assess your financial situation and help you build a safe retirement plan. Contact a financial advisor today.
Playing catch-up: Activities you can do
As you near retirement age, the best financial moves will be specific and deliberate, from how much you invest to Which accounts do you use? to do. You should also plan for health care costs and taxes and reduce or eliminate debt where you can.
Here are several ways to increase your nest egg and ultimately your retirement income.
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Maximize and increase your 401(k) and IRA Contributions held If you can.
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Think about it Delaying Social Security benefits Up to age 70 to maximize your final benefit check.
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Keep working in your 60s. The more you can extend the income years and push the down years, the better.
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Move to a place with a lower cost of living, downsize your home, or cut down on your necessities.
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Use it on occasion Tax reduction for private entrepreneursLike writing off business expenses.
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For self-employed individuals, for example, use tax-advantaged retirement accounts SEP IRA or Solo 401(k)It limits the annual maximum contribution.
Depending on your personal situation, some or all of these methods may be appropriate.
Get help from a financial planner
It is the best way to manage all these priorities. Meeting with a financial advisor. Since you need financial planning services, your best bet may be to find someone who is a. Certified Financial Planner (CFP). Many of these professionals exist to help people navigate difficult financial situations like yours.
But when it comes to finding someone you trust, it seems a bit overwhelming. Doubt is normal. Money is an emotional topic; For many, talking openly can be embarrassing or wrong. The right financial planner will guide you through the process with compassion and understanding – and an appropriate sense of urgency.
Here’s my advice for finding a financial planner: narrow your search to those who do “Payment-only” This means that customers are only paid for what they pay and do not receive any fees or commissions for selling certain financial products. (A person who receives such commissions is often said to have a “fee-based” compensation structure.) You’re in the vulnerable position of someone in their late 50s with no retirement plan, so you probably don’t want to get stuck. With an advisor who tries to make money by selling on a particular annuity or investment product.
What you really need right now is someone who can help you pinpoint your goals and build an action plan around them. You need someone who can assess your current financial situation, identify gaps and give you some practical advice.
If you’re ready to be matched with local advisors who can help you achieve your financial goals, Start now.
But of course this is not free.
The average cost of project-based financial planning services, such as retirement planning, is $2,500. I understand that’s not pocket change for most people. But don’t think of the fee as a glaring expense, think of it as an investment. If a financial planner can help you save an extra $2,500 for retirement, at a minimum, the arrangement has paid for itself. In fact, they help you do more.
Tips for a secure retirement
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Finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool It matches you with up to three financial advisors who serve your area, and you can interview your advisor at no cost to decide which one is right for you. If you’re ready to find an advisor to help you achieve your financial goals, Start now.
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Wondering where you stand on your retirement savings? Use ours Pension calculator To see how it’s going with your retirement income needs.
Tanza Loudenback, CFP® is SmartAsset’s financial planning columnist, and answers reader questions on personal finance topics. Have a question you want answered? Email [email protected] and your question may be answered in a future column.
Please note that Tanza is not a participant in the SmartAdvisor Match platform.
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