1. Max out your retirement savings
Some financial experts, like founder of Financial Samurai Sam Dogen, say you should aim to max out your tax-advantaged retirement vehicles. “Hopefully, it’s something that becomes automatic, and you’re not going to touch it until you’re 59½,” he said to CNBC. This will help you set yourself up for a comfortable retirement.
Only 15% of private sector workers had access to a defined benefit retirement plan as of 2023, according to the U.S. Bureau of Labor Statistics. 67% have access to a defined contribution plan, such as a 401(k). For those who don’t have access to either, there are other options available to help you save.
For example, an individual retirement account (IRA) is a tax-advantaged savings account that can help you save for retirement. With a traditional IRA, contributions are tax-deductible; you pay taxes upon withdrawal – ideally when you’re in a lower tax bracket.
Given the recent stock market volatility, consider investing in safe-haven assets like precious metals or gold within your IRA.
Opening a gold IRA with the help of industry leader Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
2. Automatically save your spare change
You don’t always have to put away large sums to move toward your retirement goals. Ten dollars a week could make a difference – if you’re smart about what to do with your spare change.
When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess — the coins that would wind up in your pocket if you were paying cash — into a savings account or a smart investment portfolio.
Let’s say you purchase a doughnut for $2.30. Before you’re done licking the sugar off your fingers, Acorns will round the amount to $3.00 and invest the 70-cent difference for you. Look at this math: $2.50 worth of daily round-ups add up to $900 per year — and that’s before your savings earn money in the market.
Plus, if you sign up now, you can get a $20 bonus investment.
3. Make your cash work harder for you
If you’re retired, you’re likely directing your Social Security benefits, dividends and any investment income to a checking account for your monthly expenses.
Consider switching to a high-yield account with lower or $0 fees, so your idle cash can generate more money.
For example, you can open a high-yield cash account with Wealthfront and earn 4.00% APY on deposits — which is almost 10x the national average. Plus, Wealthfront charges no account, monthly or overdraft fees.
With full access to your money at all times, Wealthfront also offers fast (and free) transfers to internal Wealthfront investing accounts, as well as external accounts.
To get started, you can fund your cash account with as little as $1.
And if you fund your account with $500 or more, you can get a $30 bonus with Wealthfront Cash.
4. Capitalize on lower taxes — while you still can
In 2017, the Trump Administration passed the Tax Cuts and Jobs Act (TCJA). While this law is complex, it essentially provided for a number of tax breaks and deductions, many of which are scheduled to sunset in 2025. However, President Trump has said he plans to extend these tax cuts.
In the meantime, it may make sense for you to convert a tax-deferred retirement account into a Roth IRA if you expect the tax rate on the converted amount to be higher in the future.
This should be done over time so you don’t end up getting bumped into a higher tax bracket. Whether this strategy is right for you depends on your financial situation, so it’s worth talking to a financial advisor about your options for capitalizing on lower taxes.
With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you've got the right portfolio to meet your goals on time.
Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisers will help you set a tailored plan, and stick to it.
Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.
5. Contribute to an HSA
Even with Medicare, retired Americans can expect to spend a chunk of money on healthcare throughout their golden years. Medicare doesn’t cover premiums or deductibles and other out-of-pocket costs, nor does it cover long-term care.
If you’re relying on Social Security to get by, unexpected medical costs could leave you stretched thin. One way to save for these additional costs in retirement is to enroll in an eligible High Deductible Health Plan (HDHP) and open a Health Savings Account (HSA).
An HSA has three big tax benefits: contributions are tax-deductible, the money can be spent tax-free for qualifying healthcare expenses and any investment growth in your account is tax-free.
“While your HSA can't pay your premiums, it exists as an emergency fund for health care, and maxing it out can leave you better prepared for large out-of-pocket medical bills,” says Experian author Emily Starbuck Gerson.
Many people combine the benefits of an HSA with a traditional health insurance policy to manage their health care expenses.
But searching through numerous websites to find the most affordable health insurance can be overwhelming.
With U65 Health Insurance, however, you can quickly compare rates from various providers and get the cheapest quote in less than five minutes.
Finding an affordable health insurance policy through U65 Health Insurance is easy, fast and free. They cover any American under the age of 65, including those who might have pre-existing health conditions.
