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I am a single female - 60 years old and don't have enough saved for retirment. I have a tradtional IRA with only 38K due to dipping into it to pay off medical debt.I regret doing this of course. I also have an employer based 401K with 81K. I'm wondering if it would be beneficial to combine the two into one account to help boost the compounding effect.

I would be interested in hearing your thoughts or strategies so that I can try to make up what I took from my IRA and continue to build and grow my retirment during my remaining years of employment. I currently contribute 10% to the 401K and only occasional deposits to the IRA when I can. I am still working full time but my income doesn't allow me to max out either of these accounts.

Vanguard IRA - VTHRX VANGUARD TARGET RETIREMENT 2030 INVESTOR CL

401K - Ascensus - 100% in American Funds Trgt Date Ret 2030 R6

Since the retirement age has changed to age 67, I'm also wondering if I should adjust or change my investments.

There is no compounding advantage to combining the accounts.

That’s math. Say you have $50,000 in in Account A and $25,000 in Account B.. Each accounts gains 5% in value over a year. So Account A is now worth $52,500 and Account B is now worth $26,250. Or $78,750 combined.

If you had put the whole $75,000 in Account A and gained 5%, you’d also have $78,750.

Now if the percentage gain in Account A is higher than that in Account B (or vice versa), that’s different.

Unless there is something specific to your occupation/employer that requires you to retire at 67, you can work as long as you are able. The distinction with age 67 is that your Social Security benefit is not reduced if you claim then, and if you are still working at 67 then you can collect Social Security with no work penalty (reduction).

Your investment choices seem fine. But it is concerning that you can’t afford to contribute more toward your retirement savings. Take a hard look at your current expenses.

MGTRP0309 wrote: Thu Jan 09, 2025 7:10 pm I'm wondering if it would be beneficial to combine the two into one account to help boost the compounding effect.

If you're still working for the employer with the 401k, you probably can't combine it with your IRA, after you stop working you can usually roll it out of the 401k into a provider like Fidelity, Schwab, etc. As other's have said it won't matter if its one or two accounts.

Other's will post about investment recommendations, but my word is to scrimp and save as much as possible.