Think you know the secrets to getting rich? Everyone knows to save more you spend less, but tips from the pros can maximize your savings for a bigger retirement nest egg. From downsizing your home and paying off student loans and debts, to having supplemental medical insurance and social security benefits you need to know about, here are the best tips to help you plan for your golden years.

Maximize Your Income

Forbes found that over 1,400 billionaires work for themselves. If you start a business, allow time for it to turn a profit. An alternative might be to work for someone else and maximize annual 401(k) contributions.

A different approach is with passive income according to Rich Dad, Poor Dad author, Robert Kiyosaki. Passive income can include rental properties, dividend-stocks or even book royalties.

Let Your Interest Accrue

Buying high-risk stocks can be tricky so diversify your portfolio with low-risk stocks. With dividend stocks, reinvest the dividends.

Compound interest can help you maximize your money over time with savings accounts. Look for FDIC insured online accounts that offer higher interest rates.

Ask the Big Questions

Most people will search online for “How to maximize my kid’s college” but then they might forget to include grad school costs for their kids. Get investment planning help so you can see the big picture.

Spend Less

Fortune Magazine found that the upper 1 percent of the wealthiest people spend up to 30 percent less.

Try these helpful tips:

• Cancel unused subscriptions. You can always get free trials.
• Cut off cable and use a streaming device.
• Downsize your home when the kids leave. Consider a retirement community that offers full amenities.
• Eat out less and cook your own meals.
• Move closer to work or work closer to home. Biking or walking saves on gas and insurance.
• Pay off all student loans and credit cards so you don’t carry debts into retirement.
• Put extra money into savings, not toward a shopping spree.
• Set up savings as auto-debits each pay date.
• Sign up for supplemental insurance to reduce the financial strain if you or a spouse gets sick or requires a hospitalization and medication in your golden years.
• Unplug appliances and electronics to save energy.
• Use coupons for groceries or shop in bulk and buy generic.
• Use discount codes online when shopping.
• Use travel rewards credit cards and points for free hotel stays or reduced airline tickets.

Increase Your Knowledge

Spending money to get advice can help:

• Attorneys can help with investment properties or an LLC.
• Accountants can give tax planning help with tax codes and deductions – like for that new home business.
• Advisors can help with 529 College Savings Plans, IRAs, and 401(k)s.

Start a Budget

Dave Ramsey recommends a zero-based budget to allocate money towards transportation, food, shelter, utilities and clothing. For other budget types, check out You Need a Budget or Mint.

Maximize Your Social Security Benefits

Maybe you did a search online on how to “Maximize My Social Security Benefits.”

Here are a few tips from the pros:

• Don’t claim your benefits early. If you wait until age 70, you can increase your social security by 8 percent for every year you waited.
• If your spouse is deceased, contact social security because you may be able to get higher benefits from their social security even if you are divorced. You have to be 62 or older, unmarried and have been married to your spouse for 10 years.
• Lastly, understand the social security formula. It’s based on 35 years of employment. If you were not working for 2 years, add on 2 additional years of employment so you will have 35 years at the maximum amount to raise your lifetime average.

Because there are so many ways to save money towards retirement, start now so you can maximize your savings!

 

3/4/2019