Retirement

Retirement Advice Past Its Prime

It is quite unfortunate that many people today are working without thinking of the time when they will retire and stop working. So many never felt the need to plan for retirement just because they felt there was still enough time to do it. Without warning, the age for retirement comes and goes and they find themselves still working and struggling to meet up. The reality of their unpreparedness start setting in and they begin to feel that they are finished.

We have always been advocating for early retirement savings, investments and contributions. No matter how many times people hear it or read about it, they still feel reluctant to start. It is better to start early but if you have already missed the time for your retirement and still want to enjoy a comfortable and stress free life in your golden years, there are still some options left for you.

savings

Here are some things you can do now that you have passed the prime of your retirement.

• Determine what you will need in retirement. This is the first thing you should do. Try to calculate the total of what you will need as a retiree based on your spending now in addition to projected future needs as a retiree.

• Determine the available sources of income. You have to determine the sources of income that will be available for you during retirement. Are you going to depend solely on your Social Security benefit? Will it really be enough to cater for your needs? What have been your contributions to your 401k and IRA all this while? Is there any hope from that angle?

• Save more. If you use to put only 25% of your earnings into your personal savings accounts, this is the time to increase it by some percentages. One of the tools you need to use now is a personal budget. If you are able to check your expenses, you will have additional free money to pump into your personal savings.

• Deploy an IRA or a 401k. Invest in available 401k in your company and if your company offers an investment- matching-plan, you must utilize it to the full amount. If you are also given a raise, don’t spend it unnecessarily instead of increasing your contribution. If this option is not available, you can open and start investing in a Roth IRA or a Traditional IRA.

• Set up different savings funds. Let your savings not be limited to retirement savings account. Open an emergency savings account as well and be deploying some percentages of your earning to it so that you will not tamper with your retirement funds.

• Invest in Insurance. There are some insurance investments you can make to avoid pitfalls in your retirement preparations. You can purchase disability and life insurance policies. This will give you an assurance of protection in cases of loss of job or death that your family will at least be protected.

• Don’t stop work too soon. I know that the decision to work beyond 60 years may be dependent on some factors like health issues. If you are strong, don’t just quit now because looking around, you haven’t gotten your retirement financial needs covered. It may seem as if it doesn’t matter but when you stop working, you will see that you underestimated your unpreparedness.

• More savings. Don’t spend money on luxuries now. This is the time to make sacrifices. Instead of doing some things that will depreciate your income, you should avoid them and add the money to your savings. Don’t forget that Social Security benefits may not be enough for you as a retiree.

There are so many ways to cut down on costs. Do more research and be inventive to avoid waste. It is never too late.

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