Retiring is a massive achievement that is only possible after many years of hard work and saving money. Once you reach the finish line for your career, it’s a matter of preserving wealth so you don’t outlive your nest egg.

You don’t have to follow every strategy on this list, but these are some of the steps to consider if you want to get more mileage out of your nest egg.

Establish Your Budget

The first step to getting the most out of your money is to establish your budget. Listing your total expenses and knowing what you can cut will help you optimize your spending. 

You still have to spend on the necessities, but it is good to minimize the unnecessary costs. Replacing a Netflix subscription with getting weekly movies at your local library can save you money. While getting rid of the Netflix subscription won’t change your life from a financial standpoint, it gets you into the mentality of looking for other ways to save.

Consider Downsizing

A house is most people’s biggest expense, so it may make sense for you to downsize. Opting for a smaller property or moving to an area with a lower cost of living will probably do the most for your nest egg’s mileage. 

It may also be a good idea to move to a house that doesn’t have stairs. While most people don’t think much about going up and down stairs, it becomes a bigger deal in your 70s and 80s. A 1-floor house will be more affordable and can minimize the likelihood of health emergencies in the future.

Make An Annual 3%-4% Withdrawal

You should be able to live on an annual 3%-4% withdrawal from your nest egg. Setting this number is important since many portfolios can replenish a 3%-4% withdrawal. You can consider high-yield ETFs that provide enough cash flow for the 3%-4% withdrawal, but each person is different.

It’s better to start with a 3% withdrawal if you can and then gradually inch up to a 4% withdrawal as you get older. However, if you need the 4% withdrawal for living expenses, you shouldn’t feel pressured to only take out 3% of your retirement accounts each year.

Keep Some Money in Growth Investments

You don’t have to make high-risk investments in assets like cryptocurrencies, but retirees shouldn’t completely abandon growth investments. Some retirees can benefit from allocating some of their funds to an ETF that follows a benchmark like the S&P 500 or Nasdaq Composite.

These funds have a history of performing well, and you can gradually trim your exposure as you get older. The main benefit of these funds is that they provide some growth, while most of the nest egg is in a low-volatility ETF with a good yield.

Allocate Your Investments Wisely

Growth investments make more sense in a Roth IRA. These accounts ensure that you won’t have to worry about paying any taxes on your capital gains. On the other hand, high-yield ETFs and stocks make more sense for traditional IRAs that let you defer taxes.

The disadvantage of receiving interest from a bank account is that you will have to pay ordinary income taxes right away. Tax-deferred accounts allow you to compound growth faster without as many disruptions. While you can also do this in a Roth IRA and avoid taxes, it’s better to avoid taxes on a growth ETF.

Wait Out Social Security If You Can

Retirees who are in their 60s may want to prolong accessing their Social Security benefits. That’s because you will receive the highest Social Security payout if you start taking it out at 70. Your lifetime earnings and work history will also impact how much you receive.

The great thing about Social Security benefits is that they go up each year due to the cost of living adjustment. Plus, waiting until you are 70 will teach you how to live with less. The Social Security benefits serve as an additional buffer that can shield your nest egg.

Pick Up a Small Side Hustle

Many people use side hustles and work part-time to get ahead on their goals. However, retirees have done all of that already, and working 20 hours per week may not sound like the most entertaining thing.

However, retirees may still want to consider smaller side hustles that offer plenty of flexibility. Many side hustles allow you to work as much or as little as you want. It’s possible to make some extra income while only working 10 hours per week.

While extra income is nice, the small side hustle will also keep you busy. It’s nice to think about vacationing the world and having a lot of free time, but people still need some type of work, as it can provide a sense of purpose.

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