Over 28% of Americans age 55+ years have zero money saved for retirement. 17% of Americans age 55+ years have less than $10,000 saved.
This means that over 35% of Americans approaching retirement have no savings prepared – other than what they may have in social security.
This is why so many retirees live in fear of the question: Will I outlive my retirement savings?
The social security system set in place in 1935 is no match for the cost of living today, nor the average lifespan. People are living much longer in 2017 than they did back then. The cost of living increases exponentially the older we get.
I am going to assume you have started preparing for retirement. However, if you are struggling, I have some advice to get you back on track.
Watch my video below for some things you can do if you are running low or behind on retirement savings.
Now, most financial advisors will ask you if you already have money in the stock market. If the answer is yes, they will advise you to take that money out when you retire. They will say to invest it into something with little to no risk, like bonds.
It is possible that the stock market will be down when you retire, so you’ll want to have your money in something that does not pose the same risk and retire comfortably.
I have a different approach than the traditional financial advisor. I say switching from stocks to bonds reduces your rate of return. Shifting your money over to bonds returns less money than keeping it in stocks.
However, the stock market does go up and down, and you definitely do not want to sell stocks when they are down. So, then, how do you generate more money in retirement without changing your stock portfolio?
1. Look into Short-Term Trades
First, look deeply into safe and smart short-term options trades.
These are trades to produce cash flow. Take out the money you need now, and leave the rest invested and compounding. This poses very low risk IF you are educated in trading. Knowing how to trade is the ultimate way to generate more cash flow.
2. Prioritize Your Retirement Portfolio
Next, prioritize changes in your retirement portfolio to maximize long-term benefits.
For example, max out your IRA’s and save as much pre-tax money as you can. This will generate tons of capital.
3. Cut Down on Spending
Third, reduce your spending.
You have to cut down your debt as fast as you can to avoid interest payments and to trim your monthly expenses. Evaluate each purchase you make. Is this purchase unnecessary?
If your cost of living is too high where you are now, consider moving. This is not the time to be paying over-expensive rent or buying a new car.
4. Educate Yourself
Lastly, learn how to invest.
Start investing your money properly with Rule One Investing. If your money is not growing or growing very slowly, it will be very hard to survive through your retirement years.
When you think about what your cost of living will be every 20 years from this point forward, double the amount every 20-year increment.
Educate yourself. The next time the market drops, you will know enough about investing and generating cash flow that you will actually benefit from those big drops and accelerate your rate of return.
What tips do you have for saving more money, especially if you are already retired? Leave a comment below, and I’ll be sure to follow up with you.
Do you know how much you’ll need to retire? Click the button below to find out from my free Early Retirement Calculator.