5 Ways to Make Your Money Grow in Retirement

Intact finances ensure a happy retirement. Below are five ways to take care of your nest egg and ensure it keeps growing to guarantee the dream life that you deserve. You have worked too hard all your life to mess this up!

1. Diversify your investment portfolio.
A successful retirement involves many types of investments, and the right mix of them. Having the proper asset allocation reduces the overall risk of your portfolio leading up to retirement. This is an excellent supplement to your social security and pension.

2. Do not be too conservative.
Naturally, you do not want to be too aggressive with your investments close to retirement. However, being too conservative is also a mistake. Some seniors go all in on CDs and cash-like investments, drawing down the principal over time. What about inflation? The value of your money will sure erode so keep that in mind.

3. Set limits in supporting your adult children.
There is nothing wrong with supporting children in need. Just be sure you are not putting yourself at risk. Always think about the outcomes of your decisions. Even better, incorporate your adult children in your retirement planning process so they understand the limitations that you are facing. Make them understand that you being responsible for yourself is important to reduce the likelihood that you will move in with them in the future.

4. Be generous in estimating the cost of healthcare.
When calculating future income needs, expect healthcare costs to be greater than projected rates. It just rises exponentially. Lower your risks by planning accordingly: have adequate insurance, create an emergency fund, and keep your savings intact.

5. Stay calm.
The market moves up and down. Do not allow yourself to be emotional over it. Whether it is a national tragedy or a series of down days for the markets, do not panic and keep your investments. If you pull your money, the loss you believe you have incurred becomes real and you blocked yourself from realizing any gains from the investment. Just be patient!

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