How To Protect Your Retirement Savings

Filed in archive Investing , Retirement on June 28, 2010

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Many seniors and those who are about to retire are seriously concerned with trying to make sure they do lose money from their retirement savings.

Here are a few tips most seniors can take to protect their savings from a slump in the economy:

Diversifying investments. When you're about to retire, most financial advisers say that your goal in managing your investment portfolio is to protect it from losses rather than to make more gains. Putting your money in different investment folders is the number one step most people take when retirement is just a few years away.

Having a cash cushion. People who are about to retire should plan on building a six-month emergency fund just in case things go wrong. It really does not pay to dip into retirement account too early and have to pay for taxes and incur penalties.

Get rid of items you don't need. If you don't need to buy something, don't. Cutting your costs will make it a lot easier to build a retirement fund.

Have some kind of sure income when you retire. Of course, there is social security... but you might want to check on investing money into annuity products that give retirees monthly checks for the rest of their lives.

Go into low-risk investments. Towards the age of retirement, money should be geared towards savings accounts, CDs and bonds.