3 great ways seniors can grow their cash now
News this week that Social Security is projected to cut benefits in 2035 barring a quick fix wasn't welcome for millions of seniors and those approaching retirement. While that date is a year later than initially anticipated, it's still worrisome for seniors relying on Social Security to make ends meet each month. And while benefits won't be cut completely, the agency projects that recipients would see a 17% cut unless action is taken before then.
That noted, there are some smart ways to prepare for this possibility. While inflation and elevated interest rates have been problematic for millions — seniors included — there are some strategic ways to take advantage of this climate. Below, we'll break down three great ways seniors can grow (and protect) their cash right now.
Start by exploring the benefits of investing in gold online.
3 great ways seniors can grow their cash now
Here are three great ways for seniors to increase their cash flow right now.
Gold investing
Gold is not traditionally considered an income-producing investment. Instead, it's more of a safe-haven asset utilized to buffer losses felt elsewhere in your portfolio. But this isn't a traditional economic climate, and the price of the precious metal has surged since March 1, breaking numerous records in the process. That makes now a rare time in which investors could theoretically turn a quick profit by investing in gold.
Depending on how much gold you buy, if the upward trajectory continues, investors could make hundreds, if not thousands, of dollars by buying "low" now and selling at a higher price in the months to come. But with many experts predicting imminent rises in the price, it makes sense to act now before the cost becomes prohibitive.
Learn more about your gold investing options here now.
CD accounts
While the returns you can earn on a certificate of deposit (CD) account will take some time to build up, you stand to earn hundreds, if not thousands, of dollars by opening one of these accounts right now. Since elevated interest rates have caused borrowing costs to surge, they've also resulted in CDs with rates of 5% or higher right now.
And that rate will remain the same for your full CD term, even if the rate climate falls during that period. Just be sure to only deposit money you can comfortably afford to part with; otherwise, you could risk having to pay an early withdrawal penalty to get it back.
See how much you could be earning with a top CD here now.
High-yield savings accounts
If the interest rates that CDs offer are attractive but the access limitations problematic, then seniors should consider high-yield savings accounts now, instead. These accounts come with rates that are almost as high as the top CDs and they are exponentially higher than what can be secured with a regular savings account (which has a minimal 0.46% average rate right now). But they operate like traditional accounts, so you'll maintain the access you're already accustomed to, all while earning more on the cash you keep in the account.
Get started with a high-yield savings account online.
The bottom line
Even though inflation and interest rates have hurt the pockets of seniors and the prospect of Social Security deductions is discouraging, there are still ways for older adults to grow their cash now. For example, investing in gold and selling as the price rises could be smart right now. On the other hand, both CDs and high-yield savings accounts provide opportunities for seniors to safely grow their savings in today's inflationary environment. As is the case with all financial products and services, however, seniors should carefully consider the pros and cons of each of these options to better improve their chances of financial success.
