12 Signs You’re Doing Well Financially When You're Over 60

It can be daunting to face your 60s worried about your money and investments. Hopefully, you've stopped wasting money and have set yourself up for a stress-free retirement.

But you might be surprised the next time you check your financial portfolio and find you're doing better than expected, especially compared to other people your age. 

Keep these signs in mind when you consider your finances after 60 and see if you're still on a successful financial path to a bright financial future. 

Your home is likely the most expensive thing you bought during your lifetime. While it can be a great way to build wealth, it also can be a burden if you're paying on a mortgage after retirement.

Paying off your home in your 60s can be a great financial relief, freeing up cash each month for other investments or spending.

It also means you have a home that belongs to you free and clear, so you don't have to worry about moving because you can't afford your mortgage anymore.

Living in a home you own isn't just about the roof over your head but also whether that roof and other areas need major renovations.

Make sure you prioritize things that need to be done to keep your home safe and running properly, such as replacing the roof, furnace, or water heater.

Also, finish and pay off any elective renovations, such as finishing your basement, adding an extension, or redesigning your kitchen.

Your 60s may be a great time to visit different cities or countries. However, those trips can also be expensive, so check out your budget and financial portfolio and look for ways to save money on travel. 

You're in good shape if you're not worried about covering that dream vacation to Australia or renting an RV to drive around the country and go to all the national parks on your bucket list.

Your 60s are a time for you to start considering your distribution payments for your Social Security.

The earliest you can start collecting Social Security benefits is at 62 years old, or you could defer your payments a few years to earn more per month. You can delay your benefit distribution until you're 70 years old to increase your monthly benefit.

The right answer for when you start taking distributions is up to you, but it's a good sign if you have made your decision and you're comfortable with it. Depending on changes in your finances, you can change your decision anytime after 62 years old.

A 401(k) is an important part of your retirement portfolio whether you retired early or still go to a job daily.

Your 401(k) should have enough to cover a decent portion of your retirement expenses, especially if you previously maxed out any matching funds with your employer.

You can start taking distributions from your 401(k) when you're 59 1/2 years old to help boost your finances, or you can hold off and let your 401(k) earn more money while it's invested.

Reaching your 60s can mean you have more time to spend on hobbies and activities outside work hours.

It also could mean you have the money to invest in supplies or the free time to try new things or work on existing projects because you don't have to worry about your cash flow.

It can be tough to start saving for retirement when you're younger, and you may regret not adding to a 401(k) early on.

But you can still pay into your 401(k) with catch-up contributions to help you secure a strong retirement portfolio.

Talk to a financial advisor or accountant to see if you qualify for catch-up contributions, and know that you're doing well financially if you can add those funds to your 401(k) to help you prepare for the future.

There are some great investments you can make when you're younger and can take on more risk. After all, you would hopefully have plenty of time to cover any losses on big risks.

But as you reach your 60s, it's a good idea to have a portfolio that doesn't expose you to too much risk since you need that money soon.

If you've already reviewed your portfolio and put your money in safer investments that will continue to earn you money throughout your 60s, you're in good shape.

What happens to your money when something happens to you?

It's important to have a thought-out estate plan with specific designations for where you want money and other investments to go, as well as property like your home or important items.

If you have an estate plan in place in your 60s, you're in good shape, but depending on your changing financial situation, you may want to revisit it and make any potential adjustments.

Debt can eat into your savings, especially after you retire. You may have to withdraw from your retirement funds to pay off debts.

It's a good idea to pay off your debt as you reach your 60s. A mortgage could be taking a good chunk of your money each month, so find a way to pay that off. You'll also want to consider getting rid of your car payments. 

And remember, only use your credit cards for items you can pay off in full at the end of each month rather than carrying a balance that could accumulate interest.

You're probably spending hours and hours of your 60s thinking about retirement, whether you're still working or you've already retired.

Regardless of your work situation, you should have a retirement plan by your 60s. It might include when you plan to retire, when you want to start collecting Social Security, or how you'll manage your retirement funds.

Having a plan already is a good sign you're taking your retirement prospects seriously and have a strategy to help you succeed in retirement.

A financial advisor can help you stay on the right path for retirement as you decide where to invest your money to see how your retirement savings stack up or how the rest of your financial portfolio should look.

It's a good idea to find a financial advisor who specializes in retirement portfolios so they know how to best advise you on where to invest your money and how to adjust your portfolio as you age.

It can be hard to know whether you're on the right path to lower your financial stress in your 60s, but some signs can tell you that you're going in the right direction.

Keep track of your money with a budget so you know where you are spending and saving.

Revisit your portfolio regularly to adjust it as needed for changes in your financial situation like retirement or paying off debts.