Securing Your Retirement

Losing my corporate career at 60 significantly hit my planned retirement investments. I’ve never been a great financial planner, and I’m still not. I love to spend money. I love having a beautiful home garden, traveling, and helping fund the next generation’s dreams. Many of these expenses feed my ego that I am successful and have drained my bank account. Nothing in life is guaranteed; I have few regrets, even if my retirement balances aren’t great!

I was widowed at age 42. My husband hadn’t planned for this as a potential situation, and I left all our financial decisions to him. He was a brilliant accountant, and he provided excellent client services. But we know all about the cobbler’s kids. I found a small life insurance policy in a shoe box under the bed. Seriously.

The Importance of Financial Planning:

One of the best financial things he had me do was to max out my retirement savings contributions. I made significantly less money and couldn’t afford our home. His employer refused to pay me commissions from his work. There was a period when I didn’t have enough money to pay house notes. Finally, after selling the home, I could rebuild my finances.

For so much of my life, I was a single woman, and saving was difficult, but I could have done more, not given as freely to my family, and I would be in a much better financial situation.

Advice to My Younger Self: If I could talk to that 42-year-old widow today, I would have so much advice for her.

  • Downsize to the smallest space you can handle—
  • Max out your retirement savings.
  • Do not try to make others’ dreams come true.
  • Don’t incur high-interest debt.
  • Save and protect your assets for yourself. You are the only person who is going to take care of you.

Seek Professional Guidance:

My financial advice is to find a financial advisor with excellent credentials assisting single women. They are out there; do your research. At age 62, I found the financial advisor I wish I’d had since being widowed. (Find out CFA organizations for referrals.) Add a quote from David.

Steps to Secure Your Financial Future at Age 60:

Now is a critical time to ensure your financial security during retirement. As you approach this new chapter, you must review your financial situation, make strategic decisions, and avoid common pitfalls. In this blog, we’ll walk you through the economic benefits and pitfalls specific to women in their 60s, empowering you to secure your retirement confidently.

  1. Create a Detailed Budget: Develop a comprehensive budget that outlines your income, expenses, and savings goals. This budget will serve as your financial roadmap, helping you manage your spending, prioritize savings, and identify areas where you can cut costs.
  2. Build an Emergency Fund: Establish an emergency fund with at least three to six months’ living expenses. This fund acts as a financial safety net, providing peace of mind in case of unexpected events like medical bills, car repairs, or job loss.
  3. Invest Wisely: Consider investing in a diversified portfolio that aligns with your financial goals and risk tolerance. Don’t shy away from investing because of perceived complexity; educate yourself or seek professional guidance to make informed investment decisions.
  4. Pay Off High-Interest Debt: Prioritize paying off high-interest debts, such as credit card balances. High-interest debt can be a significant drain on your financial resources. Focus on reducing these debts before retirement to free up funds for savings and investments.
  5. Stay Engaged in Your Career: If you’re still working in your 60s, staying engaged can positively impact your financial future. Continue to update your skills, seek opportunities for advancement or part-time work if desired, and consider how phased retirement or consulting work can supplement your income.

Financial Benefits to Maximize in Your 60s:

  1. Long-Term Care Planning: While in your 60s, consider long-term care planning. Long-term care insurance can protect your assets if you need assisted living or nursing home care. Planning for these expenses early can safeguard your retirement savings.
  2. Explore Tax-Efficient Strategies: Investigate tax-efficient withdrawal strategies for your retirement accounts. Properly managing the tax implications of your withdrawals can help stretch your retirement savings further.
  3. Consider Downsizing: Downsizing your living arrangements reduces expenses and can release home equity, which can be used to fund your retirement or long-term care needs.
  4. Go back to work: Finding a job that will supplement your income for as long as possible might be beneficial.
  5. Review Your Estate Plan: Revisit your estate plan to ensure it aligns with your wishes. Make sure your beneficiaries and estate distribution instructions are up to date.

In hindsight, I wish I’d saved more for retirement. If you’re reading this article and are younger, stop spending and start saving today! That doesn’t mean not taking the trip, buying your nephew some golf clubs, eating at that great restaurant, or getting a new piece of furniture, but saving at least 10% a year if possible.

Remember, securing your financial future in your 60s is an investment in the comfortable and enjoyable retirement you deserve.