<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

How do I start growing a nest egg for retirement with very little savings?

How do I start saving for retirement with less than $5,000? I'm receiving monthly survivor's benefits and want to put the money in some kind of savings that will help build a nest egg. Recent bank experience just showed that I don't know what I'm doing and my bank isn't a big help. One year of a $1,000 CD yielded me $2.50. I'm very disappointed and need a better plan for how to grow my money.

Banking, Retirement, Retirement Savings
Answers
Sort By:
Most Helpful
November 2018

Hello, thank you for the question.  First, accumulate an emergency savings account worth three to six months of your monthly living expenses. This money should be stored in a checking, savings or money market account so that it's accessible when needed and not at risk.   Then you'd want to understand the amount of risk that you're willing to take with the investment money to achieve your retirement goals. You can probably find some basic risk tolerance questionnaire’s online.  The amount of risk that you're comfortable with will then help guide you to a matching portfolio that's suitable for your investment objectives.  I'd also suggest finding a CERTIFIED FINANCIAL PLANNER™ in your local area to help you with this and creating a retirement plan. You can search for a financial planner in your zip code at www.letsmakeaplan.org.   A good planner can create a written retirement plan that will help you discern how much money you'll need to retire, how much income you can take from your portfolio and what return you'll need on your investments to fund your retirement income long-term.  Most will offer a free consult and by all means talk to several to find one with whom you're comfortable with before moving forward.  Often bank representatives just want to sell you products whereas a CFP® has a fiduciary duty to do what's in your best interests and to be fair they work in banks too. To summarize, have an emergency savings account, engage a good financial planner to help you create a plan, complete a risk tolerance questionnaire, select a portfolio then invest.  Hope this helps and all the best with your financial planning goals!

December 2018
January 2019
November 2018
December 2018