A 73-year-old Arizona resident named Robin shared on The Ramsey Show that she has no 401(k) and over $12,000 in student loan debt, yet plans to buy a home in three years. Host Dave Ramsey suggested she cash out a life insurance policy, pay off debt, and save for a down payment (1).
According to Vanguard, 60% of baby boomers aged 61 to 65 are not on track to retire comfortably. To boost retirement savings quickly, consider monitoring expenses closely, using budgeting apps like Rocket Money, and cutting back on unnecessary costs (2).
Living frugally and tracking expenses can help you redirect savings towards retirement. Rocket Money’s app can assist in identifying subscriptions and bills to cut back on, allowing you to save more efficiently without the stress of manual tracking (3).
Consider opening a high yield savings account to grow your savings safely, with online banks offering higher interest rates than traditional banks. This can help you reach your retirement goals faster and more effectively (4).
Another way to increase retirement savings is through dividend reinvestment plans, which allow you to reinvest regular dividends to acquire more stock, growing your nest egg over time. Platforms like Public can assist in investing in dividend stocks like Hormel Foods Corporation, offering commission-free trading and social features (5).
Recurring investments, such as those facilitated by Acorns, can help you consistently invest without much effort. Acorns automatically rounds up your purchases to the nearest dollar, investing the extra change into a portfolio for future savings. Signing up now can earn you a $20 bonus investment (6).
Consider cashing out a life insurance policy to boost retirement savings, but only as a last resort. Keep in mind that life insurance can protect loved ones from unexpected costs, so weigh the benefits and risks carefully before making a decision (7). Permanent life insurance policies like Indexed Universal Life Insurance from Ethos offer the ability to access a portion of the death benefit while the policyholder is alive. This feature can help cover unexpected expenses in retirement. The policy also allows for potential cash value growth and includes an accelerated death benefit rider for qualifying major illnesses. Premiums contribute to cash value growth, which can benefit from market-based, tax-advantaged growth with capped losses in a market downturn. The application process is simplified, requiring only a few health questions online for an instant coverage decision and personalized quote from Ethos. However, cash value growth is not guaranteed, and accessing it may reduce the death benefit if not repaid. Warren Buffett’s money rules have enabled him to turn $9,800 into a $150B fortune. Consider applying these rules to your financial strategy to build wealth and maintain it. Always rely on vetted sources and credible third-party reporting for accurate and reliable financial information. 1. Global stock markets rallied today after positive economic data and vaccine progress. The S&P 500 reached a record high, with tech stocks leading the gains. Investors are optimistic about a strong economic recovery.
2. The CDC announced that fully vaccinated people can now safely travel within the U.S. without needing to quarantine or get tested. This is a positive step towards returning to normalcy as more people get vaccinated.
3. In sports news, the NCAA Men’s Basketball Championship game is set with Gonzaga facing off against Baylor. Both teams have had impressive seasons and fans are eagerly anticipating the exciting matchup.
4. Tesla announced plans to build a new gigafactory in Texas to produce its Cybertruck and Model Y vehicles. This move is part of the company’s expansion efforts to meet growing demand for electric vehicles.
5. In entertainment news, the Oscars nominations were announced with “Mank” leading the pack with 10 nominations. Other notable contenders include “Nomadland” and “Minari.” The awards show is set to take place in April.
Read more at Yahoo Finance: Dave Ramsey tells a 73-year-old without retirement savings how to get on track