Retiring Black: How to save for your golden years

Retiring isn’t the end of your financial journey but a fresh start to a different chapter of life.
Retiring Black: How to save for your golden years
Multiple inequalities have put many Black people on a poor footing for retirement. You may not have planned for your golden years, so on National Senior Citizens Day, we’ll help you understand how to save money for retirement.
In this article

It can get frustrating that there are no standard rules that dictate where and how retirees should put their money to good use. But this lack of one-size-fits-all advice is a positive one for sure. It will give you the freedom to choose from a variety of saving options. These options are what will shape your retirement into exactly what you want it to be.

Start saving early

The saving habit is something that should automatically go out of your paycheck, it’s not something you have to remember to do. The convenience of automatic deductions will bolster your retirement savings. If you think you lack financial knowledge reach out to an adviser who will help you strategize savings and diversify your portfolio. They might even help reduce your tax liability, and figure out how much money you would need to live when the paychecks stopped coming.

Don’t wait to get professional advice. Start now!

Get out of debt

Part of preparing for retirement is paying down debt. Want to enjoy retirement without the burden of debt? Start paying off debt now—years in advance. Look at everything that is going out and coming in and pay off what you can—in other words, cut back on expenses.

Also, ensure to look through the stock of your closet, and if there is no reason to spend on shoes or clothing until your credit card debt is settled—don’t!

When you have the money you need you should be able to control where it goes.

Being budget-conscious won’t prevent you from enjoying lunch out about once a week or splashing out for a special occasion.

Contribute to a Roth IRA  

A clever option for saving in retirement is to contribute to a Roth IRA. The downside to a Roth IRA is that you don’t get a tax deduction. However, as a retiree, you’ll fall into a lower tax bracket. Moreover, with a Roth IRA, there is no age limit on contributions, unlike with a traditional IRA.

Keep investing

Retirement doesn’t mean you stop investing. The reason being, retirement might last a lot longer than you imagine. And God forbid if you were to retire early retirement age of 62, your estimated life expectancy leaves you with over 15 years of expenses without regular work.

That’s quite long to stretch out your money, and it could get longer. So keep your funds invested — and contributing more —that way you won’t outlive your money.

Buy a fixed annuity

A fixed annuity is another way to not outlive your savings. A fixed annuity turns your lump sum cash into a lifetime stream of income, no matter how long you live. So as life expectancy gets longer and longer, more than 30 years of retirement is no longer unheard of.

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Shirlene Grace Isaac

Shirlene Grace Isaac

Shirlene puts words on the Internet because she loves to do so and also for the money! She is a singer, songwriter, occasional poet, artist and muser — all in the body of a 20 something. She's a taleteller of sorts often looking for opportunities to narrate stories untold.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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