Successful Retirees Master These 7 Money Moves to Keep Their Retirement Funds Safe | ET REALITY

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Portrait of happy senior woman holding eyeglasses and looking at camera at home.

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No matter how much you’ve saved for retirement, it’s important to maintain a sharp financial focus even after you’ve left the working world. This means being smart with your money, not only in terms of how you spend it, but also how you manage it and grow it in retirement.

Part of your focus should be avoiding common retirement mistakes that could cost you money in the future. Beyond that, he must look for ways to bolster his savings with an eye toward remaining financially secure during what could be a decades-long retirement.

Here are seven money moves that will help keep your retirement funds safe.

Delay in claiming Social Security

Although you can apply for Social Security benefits starting at age 62, it is best to wait as long as possible. For example, research shows that waiting until age 70 to collect instead of age 62 will increase your monthly payment by more than three-quarters. At the very least, you should wait until full retirement age to ensure you get all the benefits you’re entitled to.

Stay organized and on budget

This is a good idea no matter your age, but it’s especially important during retirement. Shawn Plummer, CEO of The Annuity Expert, recommends making a list of assets like bank accounts, retirement accounts, and insurance policies. If you have multiple checking or savings accounts at different banks, consider combining them into one account for the best service, convenience and amenities. You can do the same if you have multiple IRAs or 401(k) plans. Similarly, minimizing your spending (for example, using one credit card instead of several) can simplify your budget and make it easier to stick to it.

Keep cash and bonuses ready

According to a blog about Sinovus financial website, it’s a good idea to put a certain amount of your portfolio in cash and bonds to protect yourself in case of a prolonged stock market decline. Synovus recommends keeping one to three years of cash in the bank and an additional three to five years of bond investments to cover living expenses.

Hire a financial advisor

If you have the money to do so, enlisting the help of a financial advisor can help you navigate various strategies to protect and grow your wealth. This is particularly important if you have money in many different assets.

Consider Target Date Mutual Funds

If you can’t afford a financial advisor, there are ways to adopt a “set it and forget it” investing model that can grow your money without professional help. A target date fund is a type of mutual fund with a specific end date, which often coincides with when you plan to retire. For example, if you plan to retire in 2040, then you would purchase a 2040 target date fund. The fund matures and is rebalanced at set intervals, usually five years. For retirees, your strategy might be to focus on more conservative returns to protect your money against market volatility, according to Moneywise.

Find long-term care coverage

As Synovus noted, one reason many retirees fear running out of money is the possibility of a large, unexpected medical expense. To protect yourself, one option is to get a long-term care insurance policy or a hybrid life insurance policy that will pay out if you have a long-term care event. Another option is a longevity annuity, which is an insurance product that requires a lump sum investment and will provide a steady stream of retirement income.

Don’t be afraid to take risks

Reaching retirement age doesn’t mean you have to keep all your money in a savings account that pays 0.01% interest. As recent years have shown, high inflation can put you in a negative financial situation that could take years to get out of. It’s okay to invest some of your money in riskier stocks that could provide you with a significant financial return 10 to 15 years from now. The important thing is to maintain a good balance between safe investments and riskier ones.

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