At 68, I have no investment of any kind. My $80,000 condo is refunded and I saved $60,000. Am I too late?
-Bernhard
It’s never too late to start investing and managing your money. But I don’t want to water it down. If you’re considering investing for retirement, starting in your late 60s certainly limits your options. So, let’s discuss some of your choices. (If you have other questions about investing or retirement, this tool can help you find potential advisors.)
Consider other forms of income
With limited savings, you probably can’t afford to ignore Social Security benefits and other sources of income. If you haven’t yet collected 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 an income during your golden years. Can you continue to work in your current position, find a part-time job or consult on the side?
Delaying full retirement will increase your short-term cash flow, allow you to plan for a shorter retirement period, and possibly give you the opportunity to save and invest. (If you have more questions about maximizing retirement income, this tool can help you find potential advisors.)
Paying Down Your Home Is Great, But Consider Other Spending Cuts
The fact that you fully own your $80,000 condo is commendable. And depending on your location, there may not be many other properties in a lower price point. So you may have limited options to downsize or find cheaper accommodation.
But consider other steps you can take to reduce spending on transportation, travel, food, and other costs. With minimal savings, you’ll need to keep a close eye on your spending.
If you’re ready to be matched with local advisors who can help you achieve your financial goals, start now.
Determine the appropriate asset allocation
If you expect your $60,000 to last decades into retirement, it’s worth evaluating an appropriate investment balance that allows for both short-term cash flow, medium-term time horizons, and long-term growth. term. Keeping 100% of your money in cash usually doesn’t keep it up with inflation, and it causes your nest egg to lose value over time.
Working with a financial advisor can help you build a portfolio and project your retirement expenses and income needs into the future. A holistic advisor may also be able to help you manage the tax implications of your income and retirement projections.
Depending on your financial situation, determine if you qualify for financial counseling or even pro bono financial assistance from a source such as the Financial Planning Association. (If you have other 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 in your late 60s will affect the options you have. Consider social security strategies, sources of income and appropriate asset allocation. A financial advisor may be able to help you project your investment and income plan for decades to come.
Tips for finding a financial advisor
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Finding a financial advisor doesn’t have to be difficult. SmartAsset’s free tool connects you with up to three licensed financial advisors who serve your area, and you can interview your matching advisors for free 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.
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Consider a few advisers before settling on one. It’s important to make sure you find someone you trust to handle your money. When considering your options, here are the questions you should ask an advisor to make sure you make the right choice.
Susannah Snider, CFP® is SmartAsset’s financial planning columnist and answers readers’ questions on personal finance topics. Do you have a question you would like answered? Email AskAnAdvisor@smartasset.com and your question might be answered in a future column.
Please note that Susannah does not participate in the SmartAdvisor Match platform and is an employee of SmartAsset.
Photo credit: ©Jen Barker Worley, ©iStockPhoto/Moon Safari, ©iStockPhoto/Milan Markovic
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