If you’re like most of us your portfolio, especially your IRA and 401(k), have probably taken a large haircut. Even worse, if your portfolio included any significant chunk of financial services stocks and bonds (yes, I’m looking at you Bank of America, Citi Group, Morgan Stanley, et al.) your portfolio probably got more of a buzz cut than a slight trim.
The point is, how do we try to fund our retirement but still have any money left on which to live? Well, I’m not a money manager so, unfortunately, I don’t have any hot stock tips or financial advice that will instantly resuscitate your dying portfolio. Nevertheless, I came across this Money Matters article. It may be short and sweet but it has some great advice on basic ways to maximize your 401(k), particularly if you’re 50 or older. It also has some basic advice regarding social security. For example, delaying receipt of social security payments if you don’t need them yet because you’re still working can increase the SS payments up to 7-8% for every year you delay taking SS payments.
Unfortunately, for those in their 80’s who never funded their retirement or their savings for assisted living or long term care, those ideas won’t help. And of course, many who are in their 50’s now are helping support their parents. If your parents need assisted living, in home care, or skilled nursing help, the Veterans Aid & Attendance Non service Connected Pension can be helpful as can Medi-Cal & Medicaid. And this can leave you enough money to fund your retirement.
I know the economy is still dormant and I’ve heard from colleagues it may stay this way for at least a few more years. While these are tough times, the point is you do have options and there are ways to plan so you have enough money with which to retire.