When retirement age is creeping up on you, you really can start to get nervous about what you’re going to do to bump up those numbers while you still can. Obviously, there are a couple of options, but that’s not to say that you should act rashly, even if it feels like you should take a leap and try to really boost your savings. What do I mean by acting rashly? Well, your best options for retirement saving after you’re 60 do not, under any circumstances, mean pulling your retirement savings from one account and selecting a more risky investment just because the rate of return could potentially be a bit higher. You simply don’t have time for that sort of thing, so get it out of your mind right now!
Heading out to Vegas is a terrible idea, as well, so don’t even think of it! With that in mind, let’s take a quick look at what you should be doing to bump up your retirement accounts before you actually retire. First off, there’s only one way you should be reinvesting your funds, and that’s into safer accounts. Diversification is still critical, but bonds and treasury securities, combined with a sprinkling of blue-chip dividend stocks (though not too many) are a good way to go. Mutual funds that err on the safe side will work well, and should be your first choice over and above picking and choosing stocks on your own.
Now, perhaps a more important consideration is just how much you’re actually putting into that account right now. The 2015 IRA contribution limit is $18,000, but if you’re over 50 years old, you can sock away an extra $6000 per year with the same tax benefits, so whatever it takes, take advantage of that bonus!
Laying aside cash in savings is a great idea either way you look at it, but apart from your retirement accounts, it’s a good idea to have an emergency fund in place and have all your credit cards paid off. Try to set up an emergency fund with at least 5-6 months’ worth of expenses. You might be surprised by how little you actually need to live off of when you aren’t dealing with a mortgage, car payment, credit card bills, and all the other assorted things that we tend to buy through the years. If you can avoid buying them after you’re sixty, and have them paid off, then your retirement is bound to be far more enjoyable than it might have been other wise.
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