45% of baby boomers have no retirement savings, according to a survey. Suze Orman calls it a 'retirement crisis.'
Retirement looked far in your 20s.
By 50, you may not be ready for it. This may be true when coronavirus worries shake the stock market and your money.
You may have no savings. 45 percent of baby boomers have no retirement savings, according to a 2019 survey. In February 2019, the group polled 804 Americans 56-72.
Suze Orman says many Americans can't retire.
The NYT bestseller declared a crisis.
You can get on track with smart moves.
Stop dreaming of retiring by 55 or 60, says Orman, author of "The Ultimate Retirement Guide for 50+."
"You should retire at 70," she said. "Working from 50 to 70 gives your money 20 more years to grow."
Here are five retirement ideas Orman recommends for adults over 50.
1. Check your finances
"You need to look at your total financial situation, including how much you spend and save." Women & Money anchor Orman remarked this.
You should cut wasteful spending.
If you plan to stay in your house, pay off the mortgage before you retire.
2. Downsize
If your home is too big and you can sell it for a profit, do so. Then downsize to something cheaper.
She said, "Don't wait until you're 60 or 70 to sell." "Downsize so you can start saving money now."
3. Increase emergency fund
Boost your emergency savings now.
When you're over 50, Orman recommends saving two to three years' worth of living expenditures.
When it's time to start drawing from your retirement account, you want to avoid large stock market losses, like last week when the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all lost more than 10%. Their largest weekly drop since October 2008
"Don't withdraw then," she said.
If you have cash, you can live on it until the market returns.
4. Make Roth IRA contributions
Any new retirement contributions should go into a Roth IRA, Orman added.
"Later in life, you want to withdraw tax-free," she said.
After-tax Roth IRA contributions aren't taxed when withdrawn in retirement. Traditional IRA contributions aren't taxed, but withdrawals are.
Whether you can contribute to a Roth IRA depends on your income. Singles can if their MAGI is less $139,000. Your joint income should be under $206,000 if you're married.
5. Check investments
Cash, equities, and bonds: how much? Ensure your retirement portfolio is properly allocated.
Orman recommends dividend-paying equities or ETFs. ETFs are exchange-traded baskets of equities and bonds. ETF.com says dividend ETFs focus on high, consistent, and rising dividends.
“You want these stocks to provide income if the market goes down,” she explained.
You desire a comfortable retirement. Educating yourself pays off, Orman said, even if you make mistakes.
"The biggest financial mistake you'll make is one you don't realize," she added.
Ready. Set. Grow. is a CNBC and Acorns financial education campaign. Acorns investors include NBCUniversal and Comcast Ventures.
Cherish every day and your life will be magical
(Source articel. Over 50? Suze Orman shares 5 smart strategies to boost retirement funds)
