• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Stumble Forward

Stumble Forward

Avoid Life's Financial Pitfalls

  • Blog
  • About
  • Contact
  • Resources

3 Foolproof Strategies to Protect Your Retirement Savings

June 28, 2021 by Christopher

Photo by Huy Phan from Pexels

Covid-19 presented everyone with a lot of unprecedented challenges. Economies plummeted, and millions across the world lost their jobs.

Naturally, the current and upcoming market fluctuations propelled everyone to evaluate their financial goals and planning. It won’t be wrong to say that even retirement savings were not immune to the changes.

More than 70% of Americans said it is very critical to protect their retirement savings even before this crisis. So, without further ado, let’s move on to the strategies that will lead you to safeguard your nest egg.

Before we begin the strategies, here’s what you must consider.

  • Analyze and have a basic understanding of the risks that you can take.
  • Keep some money aside for emergencies and taxes.
  • Consider options that don’t fluctuate with market trends.

Now let’s get back to where we started!

 

1. Set a Budget Keeping in Mind The Retirement

If you have an estimate of the cash that you will need each year of retirement, this will determine the size of your nest egg.

For instance, if you retire around 65 years, you must have a financial forecast and plan for at least 20 years. Undoubtedly, you’ll want to save for at least these decades.

For instance, you must estimate the withdrawals from a 401(k) and IRA as your new salary. In addition to your social security benefits or other retirement options, these amounts will help you with your everyday expenses.

So, you need to set a budget accordingly to avoid any costly purchases or spending that might make you fall into debt.

 

2. Strategize For Your Taxes in Retirement

To avoid any surprises later on, you need to be a little proactive about your future expectations.

The way you invest now will impact your current taxes, but it can have a fair share of effect on future taxes too. For instance, if you opt for a traditional IRA to save money or part of your investment plan, you can deduct your current tax return contributions.

However, you’ll have to pay taxes when you withdraw this money at the time of retirement.

On the contrary, if you opt for modern IRA options available, you’ll again have to pay taxes when you make contributions. But you won’t have to pay taxes at the time of retirement.

 

3. Invest in Strategies That Are Immune to Market Fluctuations

Clearly, you’ll have a lot of options available to allocate your funds. You might think about investing in stocks, bonds, or money market accounts, or CDs.

However, they carry some risks attached to them. While the higher the risk, the higher the rate of return, you can’t always be comfortable with such options. Think again about what happened during COVID.

So, set aside some funds into accounts that don’t get affected by market fluctuations. For instance, opting for Crash Proof Retirement will help you make investments only on products that pay interest.

You can talk to a financial adviser to help you with the strategies to safeguard your retirement savings.

 

Wrapping Up

Remember, you face a lot of things when you retire. Who knows, you might encounter unexpected medical expenses?

You need to have some cash in hand to avoid reaching into your long-term savings account.

Related

Filed Under: Investing

About Christopher

Chris is a personal finance blogger with Stumble Forward helping people avoid life's financial mistakes and live a higher quality financial life.

Primary Sidebar

Get To Know Me

Hi, my name is Chris! I’m a personal finance and small business nerd.  Check out my blog where I share all of my favorite tips about saving money to running a small business.

As Seen On…

Top Articles

Categories

  • Business Opportunities
  • Business Tips
  • Careers
  • Consumer Advice
  • Credit
  • Credit Cards
  • Debt Managment
  • Education
  • Financial Independence
  • Food & Cooking
  • Health & Fitness
  • How To Guides
  • Identity Theft
  • Industrial
  • Insurance
  • Investing
  • Law
  • Lifestyle
  • Money Managment
  • Mortgages & Loans
  • Online Business
  • Pets
  • Product Reviews
  • Real Estate
  • Saving Money
  • Scams
  • Tech
  • Travel
  • Uncategorized

Related Blogs

Side Hustle Academy

Wallet Impact

Course Lifestyle

Welders Lab

Footer

Brilliantly

SAFE!

stumbleforward.com

Content & Links

Verified by Sur.ly

2022
  • Blog
  • About
  • Contact
  • Resources

Legal Stuff – Yep We Got That Too

Privacy Policy
Disclaimer for Stumble Forward
FTC Disclosure

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in