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If you\u2019re 65 years old and gearing up to retire, it\u2019s a good time to assess your savings. The average balance of retirement accounts for Americans aged 65 to 74 was $609,000 in 2022, according to the Federal Reserve\u2019s latest Survey of Consumer Finances.<\/p>\n
However, the median balance among this demographic was only $200,000.<\/p>\n
With most financial gurus stating that you need millions to retire, is it possible to live comfortably if you only have $500,000 in the bank?<\/p>\n
With careful planning it\u2019s possible to make a $500,000 nest egg work. Here\u2019s how.<\/p>\n
If you use the classic 4% rule to manage your retirement savings, you\u2019re looking at about $20,000 per year in withdrawals with a $500,000 balance, adjusting for inflation annually. But that\u2019s probably not your only income source available. Chances are, you\u2019re eligible for Social Security at the very least.<\/p>\n
The average retired worker on Social Security collects about $23,000 annually. Combined with your savings, you may be able to afford a decent lifestyle if your expenses are relatively low and your home is already paid off (or close to it).<\/p>\n
At the same time, it\u2019s important to budget carefully so you\u2019re able to cover your expenses without overdrawing from your savings and putting yourself at risk of running out. To map out your spending and create a strict but realistic plan you may want to consult a financial advisor.<\/p>\n
Advisor.com<\/a> connects you with vetted fiduciary financial advisors near you. All you have to do is answer a few simple questions about your finances, and Adivsor.com matches you with a short list of certified experts to choose from.<\/p>\n You can then set up an introductory meeting with no obligation to hire<\/a>.<\/p>\n A $500,000 nest egg can continue to grow in retirement if you invest in a savvy manner. Many retirees are inclined to dump their stocks and shift over to more stable investments, such as bonds, upon retiring. However, it\u2019s a good idea to keep some of your savings in stocks so your portfolio is able to gain value even while you\u2019re withdrawing from it.<\/p>\n One common formula for investing in stocks as a retiree is to subtract your age from 110. If you\u2019re 65, that guidance tells you to keep 45% of your portfolio in stocks, decreasing as you get older.<\/p>\n The nearer you get to your retirement age, the less risk you should be taking. One way to achieve this is to diversify your portfolio outside of stocks and bonds. By including alternative assets such as gold in the mix, your portfolio can remain stable despite market fluctuations.<\/p>\n Gold has long been considered the standard for inflation hedging \u2014 helping you ensure the purchasing power of your money doesn\u2019t erode over time.<\/p>\n Priority Gold<\/a> is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.<\/p>\n If you\u2019d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver<\/a>.<\/p>\n To learn more about how Priority Gold can help you reduce inflation\u2019s impact on your nest egg, download their free 2025 gold investor bundle<\/a>.<\/p>\n Read more: Rich, young Americans are ditching stocks \u2014 here are the alternative assets they’re banking on instead<\/a><\/strong><\/p>\n There\u2019s no rule saying you have to stop working completely in retirement. Taking on a part-time job can be a nice way to supplement your savings. And even if you\u2019re collecting Social Security, once you reach your full retirement age, you can earn any amount of income from a job without having any portion of your monthly benefit withheld.<\/p>\n If you don\u2019t like the idea of committing to a part-time work schedule, look at the gig economy. Driving for a ride-hailing service or pet-sitting are things you can do at your own convenience.<\/p>\n You can also get an income without having to take on additional work during your golden years with investments in real estate.<\/p>\n \u201cWhether you are a billionaire or a mom-and-pop property owner, real estate is an outstanding income-producing asset,\u201d said Kevin Chancellor, founder and financial advisor at Black Lab Financial Services.<\/p>\n You can tap into this market by investing in shares of vacation homes or rental properties through Arrived<\/a>.<\/p>\n Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.<\/p>\n To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100<\/a>, potentially earning quarterly dividends.<\/p>\n Delaying Social Security past full retirement age boosts your monthly benefit by 8% per year, up until age 70.<\/p>\n That could have a big impact on your income if you\u2019re able to wait that long. It would mean dipping more into your savings at first, but the benefit might be worth it in the long run.<\/p>\n While you continue to build your nest egg, consider auto-investing your spare change.<\/p>\n When you make a purchase on your credit or debit card, Acorns<\/a> automatically rounds up the price to the nearest dollar and places the excess \u2014 the coins that would wind up in your pocket if you were paying cash \u2014 into a smart investment portfolio.<\/p>\n Let\u2019s say you purchase a doughnut for $2.30. Before you\u2019re done licking the sugar off your fingers, Acorns will round the amount to $3.00 and invest the 70-cent difference for you. Look at this math: $2.50 worth of daily round-ups add up to $900 per year \u2014 and that\u2019s before your savings earn money in the market.<\/p>\n Plus, if you sign up now, you can get a $20 bonus investment<\/a>.<\/p>\n Financial emergencies can arise at any time during retirement, so it’s wise to set aside six to 12 months of expenses in cash so you can cope with unplanned costs.<\/p>\n Keeping your emergency fund accessible at all times can help you avoid taking on debt or liquidating your investments when the market is unfavorable. A high-yield savings account can be your best bet for your emergency fund, as they earn higher returns compared to traditional savings accounts, and are readily available when needed.<\/p>\n Health care expenses can also eat into your savings. Fidelity estimates that the average cost of health care for 65-year-olds who retire today will be $165,000 throughout their golden years.<\/p>\n If you are on the cusp of retirement and are under the age of 65, signing up for health insurance now may mitigate your healthcare expenses down the line.<\/p>\n With U65 Health Insurance<\/a>, you can compare rates offered by leading insurance providers near you. The process is completely free, and you can get the best quotes within minutes.<\/p>\n Here\u2019s how it works: Enter your zip code and household income, and U65 Health Insurance will show quotes from leading insurance providers<\/a> like Anthem, Kaiser, Cigna, Oscar Health, and others.<\/p>\n From there, you can review your options and select your preferred coverage before finalizing.<\/p>\n