New Ideas to Beef up Your Retirement Savings

Mary Beth Franklin brings forth seven strategies worth considering: (1) the Roth 401(k), which has no income limits and a higher contribution ceiling than the original Roth, (2) self-directed IRAs, which give you the option in investing in a business that you like but which is too small for the normal mutual fund, (3) skip early Social Security and wait until standard age (65.5-67, varies by year of birth) which provides significantly larger monthly benefits. This idea is particularly good for 60-something women in good health, (4) start a new career or new business even if you are over 50, (5) reduce housing expenses by moving to a smaller city and investment expenses by taking care of your own finances, (6) stay in your present house where realistic, even if you need to take out a reverse mortgage to remodel, (7) overhaul your portfolio and get advice on how to overhaul if you are not satisfied with where you are going.

Not all ideas are applicable to all investors and in some ways (7) is contradictory to (5), but all are worth considering. The Roth 401 (k) is particularly promising if your employer is amendable and younger investors may like the control of a self-directed IRA. (3), (4) and (6) also are good if your life circumstances are favorable.