If you’re over 60, your retirement plan should be shifting.

Provided by Meld University

Upcoming Event:

Click here for details and to register for our next Meld University event: Rollover And Play Dead. Does Your Estate Plan Really Work?. The classes will be held on Tuesday, December 3rd at Greystone Golf & Country Club - Founder's Clubhouse. There is no cost to register, but seating is limited.

If you’re over the age of 60, you likely hit your peak earning years in the thick of the Great Recession.

Between late 2007 and mid-2009, 8.7 million jobs were lost. Raises stagnated, and retirement savings took a beating. In total, the financial crisis wiped out $3.4 trillion in retirement savings. For those who were fast-approaching retirement age, that meant their task had shifted — from building up a solid nest egg to getting themselves back to where they’d started.

Now, 10 years later, the economy has recovered, and you are moving even closer to retirement. That means your financial planning strategy needs another shift.

What’s the most important thing to consider in retirement planning after 60?

The short answer is, the amount of risk you assume.

Conventional wisdom says that your portfolio should become less risky as you age, with a gradual shift toward safer investments. The thinking behind that is, the older you get, the less time you have remaining to recover from a significant loss.

Considering the extended bull market we’re currently experiencing, that advice is more sound than ever.

How do I know if my retirement plan is on track to meet my goals?

Take the time to sit down with your CERTIFIED FINANCIAL PLANNER® and review your asset allocation, with an eye toward protecting your investments. But remember: Balance is key. You probably don’t need to avoid stocks altogether. After all, that’s where you stand to gain the most. But this all depends on how much return you need to meet the goals of your retirement plan. At this age, you should have well defined goals and be well on your way to meeting them. If you haven’t set goals, don’t panic. A CFP® can help you understand your position and set goals, while a Situational Investment Plan can highlight what you need to do to meet those goals.

What should I do with my 401k or IRA after 60?

If you’re still working, keep contributing.

Catch-up provisions for retirement accounts allow those over the age of 50 to increase their contributions to a 401k or IRA. For example, individuals with IRAs can contribute up to $6,500 per year after 50. And those with a 401k can contribute up to $24,000 per year. If you’re working for a company that provides a 401k match, that can provide a significant boost to your savings in the years leading up to retirement. It is important to note, however, that employers do not have to match the full catch-up provision, so ask your company about its policies to understand the extent of the benefit.

How does debt factor into retirement planning after 60?

Debt isn’t always a bad thing. But it can become a problem when you’re dealing with high interest rates — especially after 60.

Money spent on interest is money you can’t invest in retirement, so consider transferring high-interest credit card balances to cards with lower rates when possible. If you are still paying down your mortgage, you may want to evaluate refinancing options. Or maybe it’s time to downsize and cut your mortgage — and the corresponding interest payments — down to size. The bottom line is there are many options, and a CFP® is a great resource to help you sort through them.

How do I know if I’m on track to have enough money when I retire?

You need insight into your investment portfolio and what you can expect from Social Security, a pension or other income sources, for sure. You also need a monthly spending budget. For many people, this can be a daunting task.

Keeping track of your monthly spending habits and expenses is more important after 60 than ever before. That’s because your income in retirement is likely to drop below pre-retirement levels. That shift can be a shock to the system and can cause some retirees to churn through retirement savings at a more rapid clip than they would like.

Enlisting a CFP® to help set your goals is a great start, but you need a plan of action. That is why we have developed our proprietary Situational Investment Plan to streamline your retirement planning. If you’re curious, click here to learn more about how Situational Investing can help you.

Remember: The average retirement lasts 18 years. For many of us, it will last much longer. You’re playing the long game, and you need to plan accordingly.

To learn more about planning your retirement, visit Meld University where we provide a wealth of articles and in-person classes to help you be successful in your retirement plan. If you are looking for help or advice about your retirement, contact us to schedule a meeting with our team.

Upcoming Event:

Click here for details and to register for our next Meld University event: Rollover And Play Dead. Does Your Estate Plan Really Work?. The classes will be held on Tuesday, December 3rd at Greystone Golf & Country Club - Founder's Clubhouse. There is no cost to register, but seating is limited.

Meld Financial, Inc. may be reached at:



P. O. Box 43626

Birmingham, AL 35243


Securities offered through Triad Advisors, LLC . Member FINRA/SIPC.

Advisory services offered through Meld Financial, Inc.

Triad Advisors and Meld Financial are not affiliated.

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