Senior Savings Tips: 5 ways to be ready

The first step is to know what your fixed expenses will be and, if possible, how much to book for unforeseen events and thus calculate how much is needed. To get the account, make “a budget for retirement life and determine how old you plan to start using your social security funds,” Chapman recommends.

The calculator available on the American Retirement Association (AARP) website is an easy tool for estimating how much retirement savings need to be saved. Just answer a few questions about your home, your savings and the lifestyle you want to have after stopping working to find the number indicated.

In a recent letter to his shareholders, billionaire Warren Buffett gives a wise investor’s advice that also applies to those who have their money in a retirement account: “It’s crazy to risk what you have and need to get what you don’t need” .

AceYourRetirement.org is an joint initiative by AARP and AD Council to easily teach people how to save for their future. This free service and, for now, only available in English offers a digital trainer called Avo who, based on your answers about your life and savings, proposes solutions to pay more your money and control expenses.

The next step is to open a personal retirement account (IRA) or a 401K. If your company endorses a 401K, find out what’s the minimum possible for you to participate. Experts recommend scanting at least 10% of your salary per year and increasing your contributions year after year. Your company will contribute to your account as well. Don’t use that money, increase your contribution frequently and don’t fall into the hands of brokers who offer to reinvest your money. Also 30 states in the country are considering creating retirement savings plans for small business employees, and 7 entities—California was the first—already implemented. This TD Bank page clearly explains what an IRA is and its different types, which are another option to save.

The main rule for hiring a financial advisor is to run away from those who charge a high percentage of your money for their services. As low as they may seem, these transaction payments and advice can put your future at risk. Many brokers sell financial products that have very high commissions and fees or surprise payments. Make sure these plans meet your needs. Checking the advisor’s credentials, asking for every offer you make in writing, and not believing in promises (almost always baseless) are some of the tips to avoid being a victim of unscrupulous.

Technology can help you, and these figures prove it: more than 90% of adults over the age of 50 own a computer or laptop, 70% have a smartphone, and 40% use a tablet, says an AARP study. If you have one of these devices you can use the Finhabits app, an investment engine created to defeat the distrust of Latinos to invest their money. The service, offered in Finhabits.com, charges $1 per month for accounts under $2,500 and to learn how to move money, it’s enough to put $5 to work.