With the United States (and the world) in the grips of the COVID-19 pandemic likely at least through the winter months, many Americans—especially those of retirement age—are taking measure of their financial health. Taking an objective look at these figures every year is a great idea to make sure you remain on the right track.

Schenectady Center for Rehabilitation and Nursing has a look at six markers that you need to consider when seeing if your bank account and other investments are in good shape.

  1. Cash Flow

This one is simple—are you bringing in more money than is going out every month? Calculate your income and expenses, and if you’re not spending within your means, the first thing you need to do is either spend less or make more in order to get this number in the black.

  1. Social Security

If you’re not yet claiming this benefit, create an account at www.ssa.gov/myaccount to see what you can receive at different ages. The longer you wait, the more you’ll get once you start getting this benefit. For example, your monthly payout will be around 75% greater if you start taking payments at 70 instead of 62.

  1. Retirement Savings

You’ll likely want to supplement your Social Security income, so add up the totals in your retirement and investment accounts to see if you’re on track for where you need to be when you start withdrawing from these funds.

  1. Credit Score

Even if you’re not planning any large purchases, a high credit score (above 760) can help lower premiums for auto and homeowner’s insurance. It also helps if you’re cosigning a loan, whether it be with a parent or a child.

  1. Debt-to-Income Ratio

Calculate this by adding up your monthly debt payments and divide by your monthly gross income. You’ll want this number to be below 43% if you’re seeking a mortgage, but even if you’re not, a lower number means you’ll be in better shape to stretch your retirement assets.

  1. Highest Interest Rate on Debt

If you carry different forms of debt (mortgage, auto, credit card, etc.), target the one with the highest interest rate and focus on paying that down or off over the next year. You’ll feel better not throwing money away to keep loans going.

 

To learn more about Schenectady Center for Rehabilitation and Nursing and all of the services they offer, visit http://schenectady-center.facilities.centershealthcare.org/.