You might have had a well-meaning grandparent tell you in your 20s that you should start to save for retirement, but you were having too much fun to do that. Then in your 30s you had a young family to care for and a house to buy, so your money was all spoken for. But now you’re in your 50s, and retirement is not that far away now. Is it too late to plan for retirement? The good news is no. Read on to learn more about how to plan for retirement at this stage of life.
Many online retirement calculators can take you part of the way towards understanding how much you need to set aside based on your current income and how much you want to have during your retirement years. To get a better idea of how much you will need, consult a financial planner who can do a more accurate calculator with you, taking into account anything you might have already set aside.
One of the ways you can set aside more money for your retirement is to scale back on your current spending. One other added benefit to curtailing spending now is that there will not be a dramatic change in your lifestyle when you retire. Again, your financial planner will be able to assist you with helping craft a budget, both for now and for the future. He or she will probably have some tips for how to save money, too.
Be sure that your post-retirement budget has a cushion for any medical expenses. If you cut things too closely, you could end up in a very stressful situation.
Particularly when you are working with an investment advisor, you have the chance to ask questions and learn about various types of investments. There are retirement products available across the risk spectrum, but as you get closer to retirement age, you will need to find products with a higher potential return – and higher risk. While you might be quite fiscally conservative, you will need to assume some risk to take advantage of the benefits.
As with any investment, there is always some risk with even the most conservative investments and you may lose money in a given soft economic year. This is why investment brochures talk about a 10-year average, or even a 20-year average so you can see the trends.
There are also rules regarding retirement products both with regards to how you can make contributions as well as take out withdrawals. Though you can read up on investments on your own, it is much more beneficial to talk to an expert who can help you.
This sounds counterintuitive when you are trying to retire, but as the saying goes, ‘when you love what you do you never work a day in your life’. This will let you work longer into retirement age, allowing you to set aside more for retirement as you go. Even if you don’t change careers, you might be able to make a little extra money selling your crafts on sites like eBay or Etsy.
You shouldn’t feel the need to panic over retirement savings. Don’t gamble on very high risk investments or lottery-type speculative ventures. Take the time to talk to a financial advisor and let him or her guide you to a proper investment portfolio that will work with your retirement plan.
Once you have made your plan, make sure you don’t just let it sit and collect dust. Take it out, review it, talk it over with your family, and talk it over with your financial advisor. Then review it annually to see if the plan is working for you and make any adjustments necessary.
It’s never too late to start planning for retirement, even if you are in your 50s. Talk to a professional financial investor today and let him or her start crafting a plan for you, so you can enjoy your golden years.