Real Answers for Life’s Money Challenges
Im 71 years old and retired at 67.
Im on Social Security and receiving two pensions.
Its not a lot of money but Im OK from month to month.
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I finally dug out of massive debt just before retiring.
Slowly and steadily, I have paid it down over the years.
I should be credit card debt-free in the next six months or so.
My credit score is excellent, but debt allowed for no retirement planning.
Were not talking about a lot of money.
Ive been putting $75 per month into bank savings for several years now.
If so, what kind of approach would you recommend?
I probably could do more than the $75 a month especially once the credit card debt is done.
I could probably make an initial investment of maybe $5,000.
Im hoping there are a lot of years of life ahead of me.
-B.
Dear B.,
I dont think youre too late to start investing here.
Even though you say its not much, thats guaranteed income for life.
As long as that money is enough to pay your bills, Im fine with you investing a little.
Thats OK for younger people because they have plenty of time for their money to recover.
Think about what your goals are in investing.
The challenge now that so many older investors face is that interest rates are historically low.
That means even high-yield savings accounts are paying next to nothing.
But before you think about that, I want you to focus on paying off your credit card debt.
When you carry a credit card balance, it costs you about 16% each year on average.
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Enough small talk.Here are some waysto earn extra cash, without all of the social stuff.
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Youll answer some questions about things like your investing experience and how youd react to losing money.
Your answers, along with your age and goals, determine how your money gets invested.
Since youre retired, your money will probably beinvested conservatively.
That means youre not going to get any jaw-dropping returns.
Just remember that theres always risk with investing.
The value of your investments could drop, especially in the short term.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
