Making up for lost time.
If, for whatever reason, you find yourself close to retirement with too little savings, don’t panic. It’s never too late to start saving! Here are some strategies that will help get you closer to your goal.
Don’t beat yourself up! Just move forward…
- Simply put a plan together and act on it. You might actually be surprised how much you can save in a small amount of time.
- Try to automatically put at least 20 percent of your income into savings or tax-sheltered retirement plans.
- Maximize your 401k contributions. At age 50, you can begin catch-up contributions, up to $5,500 extra per.*
- Make sure your investments are properly dispersed, and diversify without taking risks you can’t afford. Seek professional help if you need to but keep an eye on fees.
- Sell assets that are not producing much income or growth, and re-invest the profits in assets that produce a larger return.
Revisit your retirement plan…
- Redefine your retirement goals and plans. Be realistic, maybe you don’t need as much to live as you thought.
- Take a second job or work extra hours at your current job.
- Retire later. Or, at least consider going part-time when you’ve reached your planned retirement date.
- Put off taking Social Security. The longer you delay, the more you get paid.
Extra places you may find savings…
- Review your housing situation. Rent out a room or move to a less expensive home and save the profits.
- Put any windfalls to work for you, such as a bonus, inheritance or gift.
- Buckle down and trim extra expenses. For example, go longer between hair cuts, make your coffee at home, do your own nails, walk more and drive less, save your loose change, or eat out one less time per month. It all adds up!
In addition, we recommend making detailed annual reviews of all expenses. For example, look for ways to cut back on your insurance costs, including homeowners, auto, life and medical. Also, talk to your tax consultant about possible tax breaks or changes you could take advantage of each year.