Pump up your savings

Serious looking older couple look at pieces of paper at kitchen table.
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If you’re nearing retirement and can’t afford to take any risks with your assets or maybe just the idea of that makes you uncomfortable, you’ll want to prioritize saving.

Your best bet is to save your money, either through buying a certificate of deposit (CD) or putting it in a high-interest savings account.

Let’s start with certificates of deposit. These investments typically come in six-month, two-year or five-year terms. The longer your term, the more you’ll earn in interest.

CDs are very low risk, but the catch here is you need to leave your money with the bank for the full term otherwise you’ll miss out on accruing interest or risk an early withdrawal penalty.

If you might need your money at some point, then you’ll want to consider a high-yield savings account instead.

These accounts can earn you 10 times more than a traditional savings account, which is a great compromise for those who want to keep their money safe but earn a little extra as well.

Finally, while you’re thinking about savings, don’t forget to put aside as much as you’re allowed into a retirement account to ensure you have funds to fall back on in your golden years.

Invest wisely and strategically

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No matter how long you plan on renting — a couple of years or the rest of your life — it’s always worthwhile to put your money in sound investments that have a solid history of strong returns.

If you want to strike some balance here, why not start small? Download an app that allows you to invest your “spare change.” You can always grow your portfolio as you get more comfortable with the app.

You can also ensure your portfolio continues to benefit from the hot housing market by downloading an app that lets you buy into real estate investment trusts(REITs).

Or you could think about putting your money into U.S. farmland. People are always going to need to eat so investing in that valuable resource is sure to be a sound choice.

And if your risk tolerance is a little higher, you could even consider investing in cryptocurrency.

Other ways to put your windfall to good use

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Anytime you come into a tidy sum, you’ll want to make a few practical money moves and at least one fun or frivolous choice.

  • Pay down your debts and fix your credit score. If you’re carrying any balance on your credit cards, you’ll want to prioritize paying down debt. Not only will it lift a weight off your shoulders, it’ll give you a big credit boost — which will help when you want to lock in an affordable loan later on.

  • Protect your family’s future with life insurance. Without a family home, you’ll probably be even more focused on securing your family’s financial future. Make sure they’ll be provided for if anything happens to you by buying an affordable life insurance policy.

  • Treat yourself. Listen, it’s been a hard year for everyone but we know on top of everything that selling your house is a huge hassle. Do something nice for yourself, even if it’s just planning a cheap out-of-state vacation for now. Or splurge on a big-ticket item you’ve been yearning for — just make sure you’re paying the best price on any purchase by downloading a free browser extension that will scour the internet for coupons or better deals every time you shop online.

About the Author

Sigrid Forberg

Sigrid Forberg

Staff Writer

Sigrid is a staff writer with MoneyWise. A graduate of Carleton University's journalism program, she spent the better part of the last six years writing about business and retail. In her spare time, she enjoys reading, baking and riding her bicycle.

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