RETIREMENT PLANNING When It Seems Like It’s Too Late Everyone knows you should start saving for retirement when you start your first job. But some of us, either by choice or necessity, never seemed to really get started. If you’re getting a little long in the tooth and don’t have much tucked away, this guide is for you. It’s never too late to plan for your retirement.
- You may have a couple of advantages.
Depending on how close to retirement you are, you may be in your peak earning years with lower expenses today than a few years ago.
Perhaps even the house is paid for and the kids are taking care of themselves. If so, you can now devote a larger percentage of your income to savings.
- Make a plan. How much money do you need?
Step 1: Add your savings, other assets, and your projected retirement income.
Step 2: Subtract debt and living expenses to support the lifestyle you desire.
The shortfall is what you’ll want to provide before or during retirement.
Research some ways to bring in passive income to supplement savings.
Consider part-time work or ways to monetize your hobbies.
- Include medical and long-term-care insurance.
These get more expensive and more important with age, so talk to an expert for advice on when to get these lined up.
Include these costs in your calculations in Step #2 above.
- Save, Save, Save!
And then save some more. At this point in your career, you may be able to sock away a lot in a hurry. The sooner you do it, the sooner you’ll be able to leave your job.
- Get a team of experts.
Seek out the advisors you need to finalize your retirement planning. You may want to talk with a financial planner, accountant, or investment advisor.
Research the details of your retirement plans online or at your local bookstore or library. Starting later in your retirement planning is a challenge that you can meet with diligence and a great plan. Assess where you are today versus where you’d like to be financially, then consult with retirement experts to make a workable plan. Retirement planning can be easier than you think!