At 68, I do not have any investments of any kind. My $80,000 condo is paid off, and I have $60,000 saved. Am I too late?
-Bernhard
It’s never too late to start investing and managing your money. But I don’t want to sugarcoat it. If you’re planning to invest for retirement, getting the ball rolling in your late 60s certainly limits your options. So, let’s discuss some of your choices. (If you have additional questions about investing or retirement, this tool can help match you with potential advisors.)
Consider Alternate Forms of Income
With limited savings, you likely can’t afford to ignore Social Security benefits and other sources of income. If you haven’t tapped your Social Security benefit yet, keep in mind that waiting until 70 will maximize the benefit you receive.
It’s also worth exploring other ways to maintain income into your golden years. Can you continue working in your current position, find part-time employment or consult on the side?
Delaying full retirement will increase your cash flow in the near term, allow you to plan for a shorter retirement period and perhaps give you room to save and invest. (If you have additional questions about maximizing retirement income, this tool can help match you with potential advisors.)
Paying off Your Home Is Great, But Consider Other Expense Reductions
The fact that you outright own your $80,000 condo is commendable. And depending on your location, there may not be many other properties in a lower price tier. So, you may have limited options for downsizing or finding less expensive housing.
But consider other moves you can make to reduce expenses when it comes to transportation, travel, food and other costs. With minimal savings, you’ll need to keep a careful eye on spending.
Determine Appropriate Asset Allocation
If you plan to have your $60,000 last decades into retirement, it’s worth evaluating an appropriate investment balance that allows for both short-term liquidity, medium-term time horizons and long-term growth. Keeping 100% of your money in cash typically doesn’t allow it to keep up with inflation and it causes your nest egg to lose value over time.
Working with a financial advisor may help you build a portfolio and project out retirement spending and income needs into the future. A holistic advisor may also be able to help you work through the tax repercussions of your income and retirement projections.
Depending on your financial situation, consider whether you’re eligible for a financial advisor or even pro bono financial help from a source such as the Financial Planning Association. (If you have additional questions about investing or retirement, this tool can help match you with potential advisors.)
