You're 55 and haven't saved a dime
Below are a few tips you might want to try if you are looking at retiring in the next 10 years and have little or no money saved.
Do an inventory of what you have and what you will need.
A useful tool is MSN Money’s Retirement Income and Retirement Expense calculators. These can be found on their website under “finance”. Once you see it in black and white, it could be frightening, but hopefully it will motivate you to make huge changes in your spending and fast.
Place every dollar possible into tax-deductible retirement plans.
Enroll in the retirement plan offered by your employer. Many companies match your contribution by 25%, 50% and at times up to 100%. If you already contribute to a 401K plan at work, check into the maximum percentage they will allow and increase your contribution. If your employer does not offer a retirement plan, open at IRA account as soon as possible.
Make a zero-based budget.
This type of budget starts with the most essential expenses then each additional expense is added on by their importance until you run out of money. Your first priority is your contribution to a retirement account followed by your mortgage payment then other debts. If you run out of money before you reach such items as entertainment or a vacation fund then so be it. Living simpler now and having money for retirement is not only practical, but will give you peace of mind.
Start a small home based business.
Normally you are allowed to contribute up to 25% of your self-employment income to a tax-deductible Keogh plan, even though you are enrolled in another retirement plan.
Plan to sell and down size your home.
Plan to sell your present home and moving into one that is smaller. If you have good equity in your home bank part of the proceeds you make. This would give you an additional financial cushion. If selling is not the way you want to go, look into taking out a reverse mortgage once you have turned 62. This loan can give you additional income as long as you live in your home.
Be realistic with your dreams of retirement.
There is a very good chance you will not be able to retire at 65. The longer you work, the more money you can save and less non-earning years you will need to finance. Once you have calculated what you will have by the time you retire, start planning how you can live in retirement with that amount of income.
Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
Do an inventory of what you have and what you will need.
A useful tool is MSN Money’s Retirement Income and Retirement Expense calculators. These can be found on their website under “finance”. Once you see it in black and white, it could be frightening, but hopefully it will motivate you to make huge changes in your spending and fast.
Place every dollar possible into tax-deductible retirement plans.
Enroll in the retirement plan offered by your employer. Many companies match your contribution by 25%, 50% and at times up to 100%. If you already contribute to a 401K plan at work, check into the maximum percentage they will allow and increase your contribution. If your employer does not offer a retirement plan, open at IRA account as soon as possible.
Make a zero-based budget.
This type of budget starts with the most essential expenses then each additional expense is added on by their importance until you run out of money. Your first priority is your contribution to a retirement account followed by your mortgage payment then other debts. If you run out of money before you reach such items as entertainment or a vacation fund then so be it. Living simpler now and having money for retirement is not only practical, but will give you peace of mind.
Start a small home based business.
Normally you are allowed to contribute up to 25% of your self-employment income to a tax-deductible Keogh plan, even though you are enrolled in another retirement plan.
Plan to sell and down size your home.
Plan to sell your present home and moving into one that is smaller. If you have good equity in your home bank part of the proceeds you make. This would give you an additional financial cushion. If selling is not the way you want to go, look into taking out a reverse mortgage once you have turned 62. This loan can give you additional income as long as you live in your home.
Be realistic with your dreams of retirement.
There is a very good chance you will not be able to retire at 65. The longer you work, the more money you can save and less non-earning years you will need to finance. Once you have calculated what you will have by the time you retire, start planning how you can live in retirement with that amount of income.
Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
posted by Academy National Mortgage at 11:00 AM
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