# A Financial Checklist for Your 70s
Your 70s demand a different financial strategy than your 60s. By now, you've retired, claimed Social Security, and begun taking required minimum distributions from retirement accounts. The focus shifts from accumulation to preservation and smart distribution. This is when inflation risk and unexpected medical costs pose the biggest threats to your nest egg.
Start with your cash reserves. You need between 12 and 24 months of living expenses in a high-yield savings account or money market fund. Banks like Marcus, Ally, and American Express currently offer rates around 4.0% to 4.25% on savings accounts. This emergency buffer protects you from forced stock sales during market downturns. At 70, market volatility hits harder because you lack decades to recover.
Review your investment allocation next. The old rule of thumb (your age in bonds) suggests 70% bonds and 30% stocks at age 70. Reality is more nuanced. If you're healthy and plan to live into your 90s, you need more growth. A 60/40 or 50/50 split between stocks and bonds remains reasonable for many people in their 70s. Consider low-cost index funds like those from Vanguard or Fidelity rather than individual stocks. The Vanguard Total Stock Market ETF (VTI) and Vanguard Total Bond Market ETF (BND) offer broad diversification at minimal cost.
Healthcare expenses accelerate in your 70s. Review your Medicare coverage carefully. Standard Part B coverage leaves gaps. Supplemental Medigap policies from insurers like Cigna, AARP-partnered United Healthcare, and Humana protect against major medical bills. Alternatively, Medicare Advantage plans combine Parts A, B, and D into single policies, often with zero premiums, though they limit your doctor choices. Budget at least 15% of your annual spending for healthcare.
Tax optimization becomes urgent. If you're still working, coordinate your Social Security claiming with your tax bracket. Delaying Social Security past 70 only makes sense if you're healthy and expect to live past 82. Roth conversions may help. If you have substantial IRA balances, converting portions to a Roth at lower income years can reduce future required minimum distributions. Consult a CPA before executing conversions.
Long-term care planning cannot wait. Nursing home costs run $100,000 to $150,000 annually depending on your location. Long-term care insurance becomes expensive at 70, but hybrid life insurance policies with long-term care riders offer another path. Alternatively, you can self-insure by designating a portion of your portfolio specifically for care expenses.
Finally, update your estate plan. Work with an estate attorney to review your will, living trust, and power of attorney documents. Beneficiary designations on IRAs and life insurance override your will, so verify they match your current wishes. Name a successor trustee and healthcare proxy.
Your 70s are the sweet spot for enjoying retirement without anxiety. Lock in your safety systems now: emergency cash, appropriate asset allocation, healthcare coverage, tax strategy, and legal documents. These steps let you spend confidently and leave a clear inheritance.