Personal finance guru Suze Orman has offered tons of advice to help people get out of debt, save money and pursue their retirement goals. However, during her long career, some of the rules have shifted with the times.
Longer lifespans, a changing work landscape and volatile markets are some of the new factors that have governed how people save and invest money. Using the new money rules can put you in a better position in this ever-changing financial landscape.
Must Read
- Experts are Bullish on Gold — Here’s How to Get In
- Retirees: How a Small Gold Allocation Can Soften Losses When the Stock Market Wobbles
- Warren Buffett on Market Volatility — and 3 Ways You Can Take Advantage
1. Redefine what retirement means to you
For a long time, retirement meant permanently leaving your career behind and having full control over the rest of your schedule. The definition has morphed over time to a lifestyle that offers optimal flexibility. Working part-time, taking sabbaticals and pursuing seasonal work lets you make some extra cash while having control over your schedule.
Some people actually don’t want to stop working, and they prefer gig work over leaving their working years completely. The new rules emphasize designing a life that works for you right now instead of viewing your career life as either all work or none.
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2. Be skeptical of investing fads
When Orman launched her career, there weren’t as many financial influencers like her as accessible as they are today. Social media means that knowledge has become easier to access. But it’s also now easier to come across risky investing strategies that may harm your long-term savings.
Your tolerance for risk changes over time. Younger investors are typically able to take on more risk due to their longer time horizons, while people who are getting closer to retirement tend to focus on more conservative investments. With social media available to offer you insight into risky investments you may not have previously considered, it’s extra important to consider your risk tolerance before jumping in.
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3. Don’t rely on a magic number
Many pieces of retirement advice include a rule of thumb, like saving up a large enough nest egg to cover all of your living expenses and withdrawing around 4% each year in retirement. But rules need to be adjusted based on your personal situation. Some people may want to also focus on how to generate ongoing income.
Social Security and a pension, if available, are obvious forms of income in retirement. But there are other ways to increase your steady income, such as dividend stocks, real estate or part-time work and side gigs.
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4. Protect your future self
It’s common for people to want to travel immediately after retiring to take advantage of their newfound freedom when they’re still younger and healthier than they may be later in life.
But keep in mind that those early years of retirement can have a significant impact on the rest of your retirement years. Withdrawing a lot of money at the start of your golden years reduces how much remaining cash can compound in your investment accounts — especially if you withdraw during a market downturn. While you’re financially planning for your travels, keep in mind that you also want to let your portfolio grow.
Must Read
- Experts are Bullish on Gold — Here’s How to Get In
- Retirees: How a Small Gold Allocation Can Soften Losses When the Stock Market Wobbles
- Warren Buffett on Market Volatility — and 3 Ways You Can Take Advantage
Personal finance guru Suze Orman has offered tons of advice to help people get out of debt, save money and pursue their retirement goals. However, during her long career, some of the rules have shifted with the times.
Longer lifespans, a changing work landscape and volatile markets are some of the new factors that have governed how people save and invest money. Using the new money rules can put you in a better position in this ever-changing financial landscape.
Must Read
Experts are Bullish on Gold — Here’s How to Get In
Retirees: How a Small Gold Allocation Can Soften Losses When the Stock Market Wobbles
Warren Buffett on Market Volatility — and 3 Ways You Can Take Advantage
1. Redefine what retirement means to you
For a long time, retirement meant permanently leaving your career behind and having full control over the rest of your schedule. The definition has morphed over time to a lifestyle that offers optimal flexibility. Working part-time, taking sabbaticals and pursuing seasonal work lets you make some extra cash while having control over your schedule.
Some people actually don’t want to stop working, and they prefer gig work over leaving their working years completely. The new rules emphasize designing a life that works for you right now instead of viewing your career life as either all work or none.
Explore Remedy Meds: Medically supervised GLP-1 weight loss with unlimited clinician access
2. Be skeptical of investing fads
When Orman launched her career, there weren’t as many financial influencers like her as accessible as they are today. Social media means that knowledge has become easier to access. But it’s also now easier to come across risky investing strategies that may harm your long-term savings.
Your tolerance for risk changes over time. Younger investors are typically able to take on more risk due to their longer time horizons, while people who are getting closer to retirement tend to focus on more conservative investments. With social media available to offer you insight into risky investments you may not have previously considered, it’s extra important to consider your risk tolerance before jumping in.
Need Cash? Check out Credible’s personal loan options
3. Don’t rely on a magic number
Many pieces of retirement advice include a rule of thumb, like saving up a large enough nest egg to cover all of your living expenses and withdrawing around 4% each year in retirement. But rules need to be adjusted based on your personal situation. Some people may want to also focus on how to generate ongoing income.
Social Security and a pension, if available, are obvious forms of income in retirement. But there are other ways to increase your steady income, such as dividend stocks, real estate or part-time work and side gigs.
Looking for a long-lost friend or family member? Check out BeenVerified and start researching
4. Protect your future self
It’s common for people to want to travel immediately after retiring to take adv
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