3 Retirement Tips for Late Starters

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Are you are one of the millions of people who realized you started saving for retirement about 20 years too late?

If so, don’t lose your head and start freaking out. Here are 3 tips to help you.

  1. Downsize your lifestyle (aka - get out of debt).
    It’s a safe bet that you’ll need about 85% of what you earned before retirement after you leave your job. If you buy that $5 latte every morning or always wear the expensive, name-brand clothing, I’m talking to you. It’s time to get “gazelle intense” about paying off all your debts and living on less than you make.
  1. Put off retirement for 2 more years.
    The more you work, the more you save. According to the Center for Retirement Research at Boston College, most people that work just 2 more years past retirement age can lower the amount of savings needed by about 25%. Plus, the extra income won’t hurt anything!
  1. Start investing in mutual funds.
    If you’re 40 and have zero dollars in your retirement account, don’t give up yet! By saving just $2,000 a year in a mutual fund earning 12%, you will have $333,866 by age 65 - or $428,714 if you wait till age 67! While you won’t have the most luxurious retirement, you can draw a decent yearly income from the interest by leaving that money alone. That’s roughly $48,000 a year!

If you’re a late starter, you need to get moving right now because time is your biggest enemy!