• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Secure your retirement fund

While many Americans worry about whether they'll have enough money to survive during retirement, Suze Orman consistently advocates for Roth IRAs as a top choice for retirement savings, though not necessarily the first bucket you should withdraw from.

Aside from a Roth, there are specialized IRAs that you could consider based on specific circumstances and preferences. For instance, billionaire hedge fund manager Ray Dalio favors gold in the current high-inflation environment, calling it a "timeless and universal" investment. Meanwhile, Orman has spoken at length about the importance of putting your money in a tax-advantaged retirement account.

If you want the best of both worlds, consider opening a gold IRA with the help of Goldco.

By opening a gold IRA, you can enjoy the tax advantages of an IRA and the inflation-hedging properties of gold.

Goldco is one of America's most trusted platforms for buying precious metals, with an A+ rating from the Better Business Bureau and five stars from Trustpilot. If you want to learn more, you can order a free information guide today.

When investing, it’s important to be cautious of any tax implications. This is why Ormans cautions her listeners about leaving their tax-free accounts untouched for as long as possible to help maximize their returns.

But if that’s not possible, there are strategic ways to offset your gains and make the most of your investments that can help you boost your retirement savings.

Frec Direct Index can help enhance the traditional index ETF by buying all stocks in an index individually and trading them algorithmically.

By automatically harvesting losses, you can capitalize on market fluctuations, swapping out underperforming stocks for 30 days to secure tax deductions. With Frec, your investment strategy is on autopilot, so you can sit back and potentially generate up to 40% of their portfolio’s value over a decade.

Read more: ‘You didn’t want to risk it’: 80-year-old woman from South Carolina is looking for the safest place for her family’s $250,000 savings. Dave Ramsey responds

Plan for your future

Before nearing retirement, seeking financial advice to tailor a retirement plan that aligns with your lifestyle is important. Regardless of the bucket you choose to withdraw from, there are various strategies, like the 4% rule, which suggests that retirees withdraw 4% of their retirement savings in the first year, adjusting annually for inflation to ensure funds last at least 30 years.

Suze has previously criticized the 4% rule as “very risky,” suggesting that retirees should extend their working years and withdraw no more than 3% to minimize risk.

However, a recent Morningstar Study indicates that withdrawing 4% is considered a safe starting point with the partial stock market recovery.

In addition to your retirement accounts, if you want to grow your nest egg over time with a high-yield cash account that offers 5.00% APY — that’s 10x the national average — consider the Wealthfront cash account.

Wealthfront is an online platform offering a range of products from automated investing to cash accounts. To get started, you can fund your cash account with as little as $1 and start stacking up your retirement savings.

How many retirement “buckets” do you need? and which one should you draw from first to maximize your total retirement savings? If you aren’t sure of the answer and want to find the optimal strategy to help you save for the future, it might be worth speaking to a professional who can help.

Advisor.com is an online platform that matches you with vetted financial advisers based on your needs. The process is simple: just answer quick questions about yourself and your finances.

From there, Advisor.com will set you up with a free, no-obligation consultation to connect you with a professional who is best suited for your financial goals.

What to read next

Victoria Vesovski is a Staff Writer for Moneywise currently pursuing her Masters of Journalism at New York University.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.