The importance of retirement accounts
Ramsey’s advice is based on a number of suppositions that may not reflect the real financial status of the average retiree.
Inflation will eat away at the value of your retirement savings, and it’s very possible that your retirement years could coincide with a period of higher inflation.
That’s not to mention the stock market’s volatility. Many experts believe a consistent 12% return, like Ramsey has optimistically said mutual funds can deliver, may not be likely.
Suze Orman’s advice, on the other hand, is more conservative. She advises retirees to withdraw as little as possible from their savings, which is a safer approach.
Either expert would argue that the best way to make your money last in retirement is to start saving as early and as aggressively as you can.
One of the best ways to save for retirement is with an IRA. But with the fluctuations of the market, you may be wondering if there are safer investment options available.
For example, Opening a gold IRA with help from American Hartford Gold combines the tax advantages of an IRA with the inflation-resistant properties of gold.
Gold has historically acted as a hedge against inflation, and many professional investors such as Ben Mallah and Peter Schiff tout it as a solid alternative investment to the stock market and way to diversify your IRA as the price of gold continues to rise.
As one of the nation’s most reputable and trusted precious metal companies, American Hartford Gold is a source for IRAs and direct purchases of precious metals and coins that many retirees trust.
Before you begin investing however, you need a plan. And while Ramsey and Orman make good points on withdrawal strategy, you may need help that's more tailored to your personal situation. If you’re unsure of how to navigate planning for retirement on your own, calling a professional give you some peace of mind.
WiserAdvisor can help you find the right financial professional for you. Their online platform connects you with vetted financial advisors, simplifying the process by having you start by answering a few quick questions about yourself and your money goals.
After connecting with a financial advisor well-suited to your needs, you can book a free, no-obligation consultation to assess further whether they’re the right fit.
Boost your existing savings
If you’re already in retirement, you may want to follow Ramsey’s advice on growing your existing savings with safe vehicles like mutual funds. However, many retirees have not considered the benefits of certificates of deposit, whose returns can now exceed 5%.
Between 2008 and 2022, when certificate of deposit rates were practically zero, and their appeal to investors about the same, they fell out of favour. But since the Fed started aggressively raised interest rates to combat inflation, certificates of deposits (CDs) have become a hot topic once more. And even though rates are slowly coming back down, these accounts are still worth a look.
You can open a CD account with Discover and earn up to 4.10% APY, with maturities ranging from three months to 10 years.
What’s more — there are no fees associated with Discover CD, and no minimum opening deposit.
Parking your savings in these short-term growth funds will allow you to plan year-to-year and continue to grow your savings when you’re on a fixed income.
You can check out Moneywise's Best High Yield Savings Accounts of 2024 to find some savvy savings options that earn you more than the national average of 0.4% APY.
Invest for passive income in retirement
Dave Ramsey is a huge advocate for finding new passive income streams to pay down debt and build savings. While much of his advice is focused on finding a lucrative side hustle, for those in their golden years, a more relaxed approach may be easier to incorporate.
One of the easiest ways to grow your savings and portfolio is through Acorns, an automated investing and saving platform that simplifies the process of setting aside extra funds.
When you spend on anything — groceries, gas, or bills — Acorns automatically rounds up the price to the nearest dollar and deposits the difference into a smart investment portfolio for you, allowing you to grow your wealth without even thinking about it.
You can also customize how you save. With an Acorns Silver plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. You can also opt for Acorns Gold plan, which offers a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.
Sign up now and for a limited time you'll get a $20 bonus investment.
