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Practical Planning Tip: Financial Planning In Your 60s

May 10, 2024

In the theme of the past few videos of discussing financial planning tips for folks in different ages groups. Today, we will discuss financial advice I would give to someone in their 60s.


Let me start by reiterating something I said in the last video which is: first, Get your accounts consolidated. Continuing to wait to get your finances organized is a mistake and will just get more difficult as you age. If you need help a financial advisor you trust can likely make this process quite seamless. 2) Is update your estate planning documents. As time goes on, things change financially and in terms of family dynamics. Make sure your documents reflect those changes. 3) have 2 years of expense money in cash or very short-term highly rated bonds. This will help mitigate the concern of sequence of returns risk, or the risk that the market will plummet as you begin withdrawing on your funds. 4) Make sure your money is invested prudently. I always say people should invest their money prudently, but at age 60 you have less room for error. Gone are the days where you could concentrate your investments in one index fund, a few stocks, or in your friend's hot deal that will undoubtedly implode. Get serious or risk derailing your financial life. 5) You need to either purchase long-term-care insurance (or explore the other options for coverage. Waiting to long on this will limit your options. And 6) Start getting into a retirement routine if you plan to retire. Going from working full time, to sitting on your toosh all day and doing nothing, but an occasional round of gold and playing with your grandkids is a rude awakening for most. Set up a daily routine, pick up a hobby, volunteer, learn a new skill, pick up a sefer, get a chevrusa or attend a few shiurim, and, if necessary (and brace yourself for this) consider getting a part time job! If it's not for the money, it's to keep you socially engaged, mentally sharp, and provide structure in your day. All this pre-retirement lifestyle planning will help you from physically and intellectually deteriorating at a rapid pace.

You can WATCH the full video here.