Deciding when to hang up your boots and finally enjoy the fruits of your labor is one of life\u2019s greatest harvests; it\u2019s also one that deserves a hard look at your finances.<\/p>\n
A new Bankrate survey shows that 58% of Americans feel their retirement savings are falling behind, leaving many soon-to-be retirees at a crossroads as they try to reap what they sowed. (1)<\/p>\n<\/p>\n
In an exclusive interview with Moneywise, New York Times bestselling author Morgan Housel \u2014 whose new book, The Art of Spending Money, shares his take on what to do if you\u2019re feeling behind on retirement. (2) Instead of taking risks and betting on the market, the best thing you can do is lower your expectations.<\/p>\n
\u201cThe market does not know or care what you need to happen,\u201d Housel told Moneywise. \u201cIt’s going to do whatever it’s going to do. So a lot of people in that situation end up taking risks that they can’t endure.\u201d<\/p>\n
Here\u2019s how to grow your harvest, without having to leave your savings lying fallow.<\/p>\n
It\u2019s easy to get swept up in the latest money trends, whether it\u2019s the cryptic promises of cryptocurrency or the allure of investing in gold. But when you\u2019re nearing retirement, chasing those get-rich-quick ideas can feel more like gambling with your future.<\/p>\n
Sure, crypto and gold have their place in a diversified portfolio, but if you\u2019re banking on them to carry you to your sunset years after 65, it might be time to take a step back.<\/p>\n
\u201cThe most likely outcome is that you’re going to blow yourself up in the process of doing it anyway,\u201d Housel said. \u201cSo this is one of those things where what wealth is, is what you have minus what you want.\u201d<\/p>\n
In the digital era, that\u2019s becoming increasingly true. According to Axios\u2019 analysis of Bureau of Labor Statistics data, nearly 19% of Americans aged 65 and older were still working in 2024. (3) Social Security helps, but only so much. The average retired worker receives about $1,980 per month, or roughly $23,760 per year, according to the Social Security Administration.<\/p>\n
Instead of trying to risk it all to play catch-up, the smarter move may be to redefine what is enough for you. That dream boat or luxury car might get swapped for something smaller and more practical.<\/p>\n
When it comes to investing for the long haul, Housel emphasized a financial harvest that\u2019s going to get you through your retirement.<\/p>\n
\u201cThe variable that I want to maximize with my investments is endurance and longevity,\u201d Housel said. \u201cI know that if I can be an average investor for the next 50 years, I will achieve every financial goal that I have and then some.\u201d<\/p>\n
Housel\u2019s entire net worth is built on that strategy. His portfolio consists of four pillars: house, cash, index funds and shares of Markel \u2014 where he\u2019s on the board.<\/p>\n
\u201cIt\u2019s as simple and boring and plain vanilla as it gets,\u201d he admitted.<\/p>\n
Yet, that\u2019s the secret. Instead of reacting, he builds his plan around it. He said he knows that market downturns aren\u2019t anomalies; they\u2019re inevitable. You don\u2019t have to find the next Tesla or foresee when to buy or sell. A portfolio built around low-cost index funds, steady contributions and a strong cash cushion can quietly help you build up your nest egg.<\/p>\n
That doesn\u2019t mean you shouldn\u2019t adjust your plan accordingly. Housel suggested taking the occasional pause to check if your portfolio still aligns with your goals as retirement nears. The goal isn\u2019t to eliminate risk, but to make sure your financial harvest can withstand the waves of drought or pestilence without going to pot.<\/p>\n
If you find yourself tempted by the latest \u201ccan\u2019t miss\u201d trend, take a breath. Ask yourself whether the trend adds endurance or complicates things. Because, as Housel reminds us, wealth doesn\u2019t come from the flashiest trades or the trendiest assets. It comes from consistency, patience and understanding that the most powerful investment strategy might just be the one that lets you sleep at night.<\/p>\n
We rely only on vetted sources and credible third-party reporting. For details, see our editoriacl ethics and guidelines.<\/p>\n
Bankrate (1<\/a>); Moneywise (2<\/a>); Axios (3<\/a>); Social Security (4<\/a>).<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Deciding when to hang up your boots and finally enjoy the fruits of your labor is one of…\n","protected":false},"author":2,"featured_media":222149,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,1789,99,104019,186,135042,38375,135041,184,185,1793,17822,2310],"class_list":{"0":"post-222148","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-bankrate","11":"tag-business","12":"tag-diversified-portfolio","13":"tag-finance","14":"tag-harvests","15":"tag-investing-in-gold","16":"tag-moneywise","17":"tag-personal-finance","18":"tag-personalfinance","19":"tag-retirement","20":"tag-retirement-savings","21":"tag-social-security"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/222148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=222148"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/222148\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/222149"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=222148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=222148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=222148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}