Saving strategies for the over-50 crowd
"After you max out your
tax-favored accounts," says Geiger, whose
book "Get Your Assets in Gear! Smart
Money Strategies" is coming out later
in 2007, "I am a huge fan of a well-diversified,
well-allocated portfolio of mutual funds.
But be sure you're practicing good asset
allocation across the board."
O'Neill recommends paying down
as quickly as possible. For example, by making
higher than required payments on credit cards,
you can save significant interest fees. Another
way to pick up extra dollars, she says, is
to work a second job and allocate all the
money earned from it for retirement.
Delaying retirement by a few years is another option. As Rosenberg points out, the old standard of retirement at 65 is disappearing. "Those born in 1960 and later are going to have to wait until 67 to receive full (Social Security) benefits," he says.
Many retirees supplement their
income with a part-time job or free-lance
work, says O'Neill. Every dollar earned means
that much less that has to be withdrawn from
pensions and savings accounts.
She suggests giving some thought
to decreasing living expenses during retirement
years, "perhaps by moving to a smaller
house or a less
expensive area of the country."
The simplest strategy is using
common sense: Spend less in your remaining
working years. Unfortunately, that's a step
many people in their 50s are not yet willing
to take, Rosenberg says. "Even something
as simple as driving a less-expensive car
can be seen as a problem. But by budgeting
well now and stowing enough dollars away,
you can avoid having to change your lifestyle
severely when you're older."