9 Shocking Hacks to Make Your 70s Your RICHEST Decade Ever

Forget everything you think about retirement! Most folks believe it’s time to relax and spend all that money you saved up over the years. Think vacations, catching up on hobbies, and spending time with grandkids – sounds great, right?

But what if you also wanted to leave something special for your family, like a chunk of change for your kids or grandkids? Maybe you even have a cause you’d love to donate to, but worry your money won’t last. Well, guess what? Your 70s can actually be your richest years yet! Buckle up, because we’ve got 9 ways to make more money – even after you’ve retired!

1. Managing Your Spending Habits

Let’s talk about spending – not the kind where you buy all the treats, but the kind where you make your money last! This is super important, especially after you retire because your main paycheck might be smaller. Think of it like this: imagine your income stream is a garden hose, and retirement makes the water flow a bit slower. So, we have to be smart about how we use that water!

There are usually two main sources of money you might get in your 70s: Social Security and your RMDs. Social Security is that special check the government gives you for working hard throughout your life. And, your Required Minimum Distributions (RMDs) are the minimum amount of money you’re required to withdraw from your retirement accounts each year (as in, money from your 401(k)).

Now, here’s the thing we want to avoid: dipping into your regular savings account too much. That money is like your backup plan, so it’s best to keep it safe for unexpected things.

So, if Social Security and your RMDs aren’t quite enough to cover all your expenses, it might be time to tighten your belt a little. We’ll talk about some smart ways to save money in the next section!

2. Dividend Stocks

Stocks are basically tiny pieces of ownership in companies, kind of like buying a tiny slice of a pizza place. But dividend stocks are a bit different.

Regular stocks might go up and down in price a lot, but dividend stocks are usually from bigger, longer-established companies that are doing well. These companies like to share some of their profits with their stockholders. They do this by giving out money, like a little bonus check, a few times a year. That’s the “dividend” part – they’re sharing their wealth!

This can be a great way to get some extra cash coming in your 70s, on top of your Social Security and retirement savings. It’s like getting a little surprise every few months! But remember, even these special stocks can be a little risky, so it’s important to pick the right ones. Here are some tips:

• Look for companies that have been giving out dividends for a long time. This shows they’re good at sharing their profits.
• Pick companies that are doing well financially. You want them to have enough money to keep sharing!
• Follow Dividend Investor for all the best stocks and the most up-to-date information.

3. Real Estate Investing

Maybe you’ve been thinking about downsizing to a smaller house in your 70s. This could be a smart way to make some extra money! Here’s a super simple breakdown of just how:

• Sell your bigger house and buy a smaller one: This will free up some cash.
• Use that cash to buy a rental property: This is a house or apartment that you rent out to other people for money every month.
• Another option is to invest in REITs: These are like tiny pieces of ownership in lots of different properties, all rolled into one investment.

Here’s why this can be a good idea for your 70s:

• Steady income: When you rent out a property, you get money every month, which is great for your retirement income.
• Protection against inflation: Over time, things generally cost more. Real estate can be a good way to keep your money safe from inflation because property values tend to go up over time.

4. Consider Bonds

Imagine you’re loaning some money to a friend. You give them the cash, and they promise to pay you back a little bit every year, with interest, until they give you all your money back at the end. That’s kind of how bonds work!

• Companies sometimes need money, so they sell bonds. It’s like borrowing money from lots of people instead of just one friend.
• When you buy a bond, you’re loaning the company some money.
• The company pays you back a little bit of interest every year. This is like your friend giving you some extra money on top of what you loaned them.
• When the bond matures (ends), you get your money back. It’s like your friend finally paying you back everything they borrowed.

Bonds are generally considered a safe investment because companies don’t want to get a bad reputation for not paying their debts. This means you’re more likely to get your money back than with some other investments.

Here’s why bonds can be a good idea for your 70s:

• Steady income: You get those little interest payments every year (usually twice per year), which can help with your retirement income.
• Lower risk: Bonds are a safer investment than some other options, so they’re a good way to protect your money.

But here’s something to think about: According to Kiplinger, lately, interest rates have been going up. Remember, those little yearly payments you get from bonds are based on interest rates. So, when interest rates go up, the interest you get from new bonds might not be as good as the interest you get from older bonds.

5. Save on Taxes in Your 70s

Taxes can take a big bite out of your retirement income. But there are ways to keep more of your money! Here are some ideas:

• Social Security and Taxes: Sometimes, when you get Social Security and also take money out of your retirement accounts (like a 401(k) or IRA), it can bump you into a higher tax bracket. This means you might owe more taxes than you thought.
• Lower Your Tax Bill: There are ways to lower your tax bill in your 70s. Here are two popular options:
  • Roth Conversions: This is a way to move your money from a regular IRA to a Roth IRA. Roth IRAs are different because you already paid taxes on the money you put in, so when you take it out in retirement, you generally don’t owe any more taxes.
  • Charitable Donations: If you like to give to charities, you can deduct the amount you donate from your taxes. This can also help lower your tax bill.

6. Consider CDs

CDs, or certificates of deposit, can be a good option for your 70s because they’re very safe. They’re insured by the FDIC, just like your checking and savings accounts, which means you get your money back even if the bank goes out of business.

Here’s how CDs work:

• You give the bank money for a certain amount of time. This could be a few months or even up to 10 years.
• The bank promises to give you a certain amount of interest in return. This is like a little bonus you get for keeping your money in the CD.
• You can’t touch your money until the CD matures (ends). This is different from a regular savings account, where you can take your money out whenever you want.

The downside of CDs is that you can’t get your money out early. If you do, you might have to pay a penalty.

Here’s a trick to get around that: Buy CDs with different maturity dates. This way, some of your CDs will mature every few months, and you’ll get your money back. You can then choose to put that money in a new CD or take it out.

7. “Side Hustles”

Maybe you have a hobby you love or a skill you’re really good at. Even in your 70s, you can turn that into a way to make some extra money! Here are a few simple ideas:

• Consulting: Did you work in a specific field for a long time? Maybe you can offer advice to other businesses now that you’re retired. This is called consulting.
• Freelancing: Are you great at writing, editing, graphic design, or something else? You can offer your services to people online or in your community. This is called freelancing.
• Selling Crafts Online: Do you love to make things like jewelry, paintings, or knitted scarves? You can sell them online through websites like Etsy or Facebook Marketplace!

Here’s why this can be a great idea:

• Extra Money: You can earn some extra cash to do something you enjoy.
• Keep Busy: Starting a side hustle can help you stay active and engaged in your retirement.
• Share Your Skills: You can use your knowledge and experience to help others.

8. Explore Reverse Mortgages

There’s a special kind of loan for people 62 and older who own their home. It’s called a reverse mortgage, and here’s how it works:

• Your house is worth a lot of money, but most of it’s tied up because you already paid most of your mortgage. A reverse mortgage lets you tap into that money without having to actually sell your home.
• The bank gives you money based on how much your house is worth and your age. The older you are, the more money you can usually get.
• You don’t have to pay the bank back every month. Instead, the money you get is like a loan that gets added to your mortgage balance.
• You keep living in your house. This is different from a regular loan, where you might lose your house if you can’t make the payments.

Here are some things to be careful about with reverse mortgages:

• You could end up owing more than your house is worth. This means you (or your heirs) will likely have to sell the house to pay off the loan.
• There are closing costs involved. These are fees you pay when you get the loan.

So, can a reverse mortgage be a good idea for your 70s? Maybe! However, it’s important to weigh the pros and cons carefully and talk to a financial advisor and family members before making a decision.

9. Chat with a Financial Advisor

Financial planning can be tricky at any age. There are lots of things to think about, like spending your money wisely, saving what you can, and making your money grow. But you don’t have to do it alone.

A financial advisor is like a money coach who can help you with all things moolah! Here’s how they can help:

• Create a spending plan: They can help you figure out how much money you need each month and how to make it last.
• Grow your savings: They can help you choose the right investments to make your money grow over time.
• Save on taxes: They can help you find ways to pay less in taxes.
• Make a plan for your future: They can help you think about things like long-term care and leaving money to your loved ones.

Here are some tips for finding a good financial advisor:

• Ask your friends and family for recommendations.
• Interview a few different advisors before you choose one.
• Make sure the advisor is a fiduciary, which means they have to act in your best interest.

Make Your 70s Your RICHEST Decade Ever

There are plenty of ways to make more money and stretch your dollars further in your 70s! From talking to a financial advisor about investments to starting a fun side hustle, there are options to fit almost any lifestyle and comfort level. Remember, the best approach depends on your unique situation. So, explore the ideas that interest you, weigh the pros and cons carefully, and talk to family members and a financial advisor to create a plan that helps you enjoy a secure and fulfilling retirement!

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