4 Things Gen Xers Should Sell Now To Boost Their Retirement Savings
Written by
Jennifer Taylor
Edited by
Jenna Klaverweiden
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Some Gen Xers are nearing retirement age. Therefore, now can be an ideal time for them to start thinking about their financial future.
The oldest Gen Xers are turning 60 in 2025, meaning retirement could be on the horizon. For this generation, now is the time to bulk up retirement savings to ensure there’s plenty of money to fund their golden years.
Part of this can be done by cleaning house — both literally and figuratively. Here’s a look at four things Gen Xers might want to consider selling and putting the money toward retirement.
Also see the top three retirement fears of Gen X.
Money Market Funds
“Lured by above-average interest rates and near negligible levels of risk, investors piled into these funds since 2022, sometimes selling other investments such as stocks,” said Chris Diodato, CFA, CMT, CFP, founder and lead financial planner at WELLth Financial Planning. “The opportunity cost of selling higher-returning investments — stocks — for lower returning investments can compound over the long-run, and many investors are currently ‘overallocated’ to money markets and high-yield savings accounts.”
When it comes to having cash on hand, he said there are limits to how much is beneficial.
“Individuals should only be holding enough cash and equivalents for four to seven months of expenses as an emergency fund and enough for immediate large expenses — e.g., a down payment for a home or a car,” he said.
Life Insurance Policy
“Many Xers may have purchased a life insurance policy in their 30s or 40s when children were young and funds to supplant the death of a breadwinner were scant,” he said. “Now with kids potentially out of the house and with many Xers amassing nest eggs, there may not be a need for insurance anymore.”
He explained that now could be an ideal time to evaluate this situation.
“Xers should take a look at their existing term and whole life policies and see if they would be better off cashing out and investing versus keeping their policies in force,” he said.
Storage Unit
“Storage units profit from our aversion to getting rid of things we don’t use,” he said.
For example, he said if you don’t have space for a hand-me-down bookcase in your home right now, keeping it in storage in case you have space in a future house is a money-draining train of thought.
“Unless belongings are very valuable, it frequently makes sense to get rid of old furniture and décor,” he said. “Even if it means buying new furnishings and fixtures in the future.”
Household Clutter
“Declutter the house and sell all the old stuff you no longer need,” said Noah Damsky, CFA, principal at Marina Wealth Advisors.
Doing so can offer multiple benefits, according to Damsky.
“A client bought an exercise bike during the Covid lockdown, when we couldn’t go to the gym,” he said. “He recently sold it on Facebook Marketplace for $500.”
He said the decision to sell the bike was an all-around win for his client.
“Since he’s been going to the gym, he doesn’t need the bike at home,” he said. “He has more space at home, he feels better about decluttering and has $500 in his pocket that he didn’t have before.”
Where To Invest Sale Money
So now that you’ve put some extra money in your pocket, how should you invest it?
“When you invest the money, don’t be afraid to stay invested in stocks,” Damsky said. “The biggest self-inflicted problems I see from pre-retirees is shifting investments to be too conservative as they near retirement.”
This can be problematic, because investments may need to last several decades.
“We forget that with life expectancies into our 80s and 90s, we have to plan for our investments to last 20-30 years in retirement,” he said. “That means don’t be afraid to have plenty of equities.”
The more you sell now, the more you’ll have to invest in your retirement. Use that as motivation stop holding on to things you don’t need.
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