1. Invest in an IRA
To avoid paying tax when making a withdrawal from your retirement account, Orman recommends you go for a Roth IRA account.
Because your contributions to a Roth account are made after tax, you won’t have to deal with deductions when you withdraw. Traditional IRAs, on the other hand, aren’t taxed when you make contributions, so you end up paying later.
In an interview with Wall Street Journal this year, Orman explained that a 25-year-old could start putting $100 a month into an S&P 500 index fund through a Roth IRA every year until they hit 65.
“It’s very probable that you will average a 12% annual rate of return over 40 years,” Orman said. “At the end of those years, you have a million dollars.”
Most banks and brokerage firms offer these accounts. But if you’re looking to combine the tax benefits of an IRA with a traditionally recession-resistant asset, opening a gold IRA might be worth considering.
This commodity-based individual retirement account allows you to both invest in gold — a solid hedge against inflation — and benefit from the tax advantages of an IRA.
By opening a gold IRA with the help of Priority Gold, you can enjoy the tax advantages of an IRA and the inflation-hedging properties of gold as you grow your nest egg.
With over 20 years of industry experience, Priority Gold boasts an A+ rating from the Better Business Bureau and a 5-star rating on TrustLink. The company promises transparent pricing, free shipping, and secure storage options for a hassle-free experience.
By signing up, you are also eligible to receive up to $10,000 in free silver, along with a free investors guide to help you decide if this opportunity is the right fit for your retirement strategy.
2. Get your investment portfolio retirement-ready
Regularly revisiting your portfolio can help you ensure you’re making informed decisions that are in line with your financial goals and timelines.
As Orman advised in a 2024 blog post: “This is your retirement and your money. Financial literacy is a need, not a want.”
Orman also once told CNBC that she recommends either stocks or exchange-traded funds ETFs that pay dividends. So even if the market sees a downturn, your investments will still provide you some income.
If you find you’re still building up the diversified portfolio Orman deems so important, you can do so simply by spending money using Acorns — an automated investing app that makes investing easily accessible.
All you have to do is sign up and link your bank account. The app will automatically round up the total cost of your purchases and invest the difference in a smart portfolio of ETFs. So all it takes to help strengthen your portfolio and save for retirement is to make your everyday purchases and watch your money grow.
You can also open an IRA account with Acorns Later, and get potential tax benefits. With the Acorns Gold plan, you can get a 3% match on new IRA contributions, as well as customize your portfolio by choosing individual stocks. You can also opt for the Acorns Silver plan, which offers a 1% match on new IRA contributions.
If you sign up today, you can get a $20 bonus investment to get you started.
If you’d like to make your trades without high fees, Public lets you easily buy and trade stocks, options, exchange-traded funds (ETFs) and more.
Public not only offers commission-free trading but also provides a high-yield account where you can park your cash between investments. Public also has social features, enabling users to follow and learn from other investors, share ideas, and stay updated on market trends with real-time insights.
You can also open a no-fee high-yield cash account on Public to park your emergency savings or uninvested cash. That way, you can earn 4.35% APY on your uninvested funds. In comparison, the national average yield on savings accounts is 0.57% APY, according to Bankrate’s survey of institutions as of Dec. 9. Also, Public’s high-yield cash account has no limits on transfers and withdrawals.
Getting the right advice
According to the Federal Reserve, only 36% of non-retirees thought their retirement savings were on track as of 2021. If you feel you could use some professional help getting retirement ready, consider reaching out to a financial advisor.
If you want advice on how much cash you should hold in your portfolio, and how to invest for safety in this market, consider finding a financial advisor through WiserAdvisor.
WiserAdvisor is an online platform that connects you with vetted financial professionals. Just answer a few quick questions about yourself and your finances, and the platform will match you with experienced advisors best suited to help you develop a plan to achieve your wealth-building goals.
You can view profiles, read past client reviews, and schedule an initial consultation for free, with no obligation to hire.
3. Take a hard look at your finances
If you haven’t already, Orman says it’s time to buckle down and take a deep look through your budget.
When speaking with the Wall Street Journal, Orman emphasized that it’s crucial for people to live below their means but within their needs.
She compares strict budgets to diets, explaining, “If you restrict, you limit, you cut back, you don’t buy this, you don’t buy that, and then all of a sudden you explode and you go out and you buy everything at once.”
To start living below your means, one of the best expenses to trim is monthly expenses insurance coverage. Make sure you aren’t overpaying for your home and auto coverage.
With OfficialCarInsurance, you can easily compare car insurance rates with just a few clicks.
Simply answer a few questions, and OfficialCarInsurance will show you a list of insurance offers available in your area.
You can find the lowest rates on your home insurance for free using BestMoney.com.
In under 2 minutes, you can browse offers tailored to your needs from a list of over 200 reputable insurance companies.
Simply fill in a bit of information and quickly find the coverage you need for the lowest possible cost. You could save roughly $482 a year.
