1. Avoid lifestyle creep
An improvement in your finances, such as a raise at work or an inheritance, shouldn’t be an excuse to go out and spend.
The strategizing boomer knows that any boost to income should go to savings and investments. In other words, they live below their means.
However, it’s all too common for a lot of people to spend what they earn — a losing proposition when it comes to saving for retirement. Instead of indiscriminate spending, follow the advice that finance writer Elizabeth Aldrich’s father gave her: create a retirement budget and stick to it.
By connecting with a financial professional, you can create a wealthbuilding plan that helps you get to retirement faster.
Zoe Financial— a wealth platform that connects people to fiduciaries, financial advisors and financial planners— can help.
Just answer a few questions about yourself and Zoe Financial will match you with a curated list of financial professionals. Then you can book a free, no-obligation consultation to see if they’re the right fit.
2. Invest aggressively
Experts like Dave Ramsey say you should invest 10% to 15% of your income annually.
Boomers with a comfortable nest egg have typically invested in a portfolio that includes a mix of asset classes, including real estate. Commercial real estate has long been touted as a wise investment for adding stability to your portfolio – outperforming the S&P 500 over a 25-year period.
Real estate investing doesn’t have to involve heavy labor or even finding desirable properties on your own. Commercial real estate private equity firms like First National Realty Partners are making it easy for investors to discover investment properties and begin earning from day one.
FNRP offers qualified investors entry to top-tier commercial real estate assets, primarily focusing on essential real estate sectors like grocery-anchored retail, multi-family housing and industrial properties.
The savvy boomer will continue to invest even after they retire. There’s no age limit on contributions to a Roth individual retirement account (IRA), for example, as long as the contributor earns income.
If you opt for a Gold IRA with American Hartford Gold, you can benefit from the tax advantages of a traditional IRA alongside the inflation-hedging properties of gold.
3. Auto-save, always
Out of sight, out of mind is the smart payday rule for the boomer who has managed to retire with confidence. That means earnings are automatically transferred to savings and investment accounts as soon as the wages are deposited.
With Acorns— an automated saving and investing app— doing this is simple.
When you link your bank account to your Acorns account, they automatically round up every purchase you make to the nearest dollar and put the spare change into a smart investment portfolio. This way, even when you’re spending on essentials, you’re saving too.
Sign up now and you can get a $20 bonus investment.
4. Don’t live on credit
For the first time ever, credit card debt in the U.S. has reached more than $1 trillion — and kept climbing from there to $1.13 trillion in February, according to the latest debt report from the Federal Reserve Bank of New York.
For those who carry balances each month, paying with cash or using a debit card to pay for purchases might be the better way.
Eliminating your credit card debt can be made easier by opting for a personal loan with Credible. Credible’s online marketplace of vetted lenders connects you to personalized loan options based on your needs.
By opting for a personal loan, you can pay off your debts faster and at a better rate and get your credit card balance off your back.
5. Ensure your spouse can live comfortably after you’re gone
No one ever feels ready to start thinking about life insurance. But the truth is, the younger you are when you purchase a policy, the lower your premiums will be.
Life insurance can be used to replace lost income, cover outstanding debts, finance children's education and pay for funeral costs. When you purchase life insurance, you are giving your family the gift of financial protection — ensuring that they will be taken care of if the worst happens.
By opting for term life insurance with SBLI, you have access to features such as LegacyShield, which can ease your mind during end-of-life planning. SBLI’s LegacyShield is a streamlined dashboard where you can manage all your financial accounts, store documents and share final wishes all in one place. This takes a bit of the stress off when you’re faced with losing a spouse.
With SBLI, you can protect your family's financial future with the support of professional advice, a simple online claims process and no medical exams required for term insurance.
