7 Tips for Late Starters on Saving for Retirement
By Chloe Sorvino | Manilla.com
Maybe you have refused to believe for the past 20 or so years that you’re getting older. Maybe you just haven’t had the funds.
Whatever reason it is, if you’re past 40 and you haven’t started saving for retirement yet, you need to start now.
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But you still have options, so don’t worry too much yet. Here are seven tips to help (and most of them don’t even involve payments into IRAs or 401Ks).
1. Contribute as much as possible. If you’re 50 years or older, the Internal Revenue Service lets you put away thousands of extra dollars a year towards your retirement savings. In 2012, the department allowed late-savers to contribute up to $22,000 to a 401K, which is $5,500 more than young workers. Check each year to find out the exact limits.
2. Invest to earn more. Even if retirement is 10 to 20 years away, you should take some risks with your savings. Investing some of your retirement funds in stocks or mutual funds will help your savings grow and will likely make up for some lost time.
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3. Delay retirement. If you continue to work for a few more years, even just one or two, you could save thousands of extra dollars towards retirement. You also may want to consider holding a part-time job during the early years of your retirement to keep a steady flow of funds coming into your accounts. You could designate that your part-time salary goes solely toward future retirement spending.
To read the entire article from Chloe Sorvino | Manilla.com:
http://finance.yahoo.com/news/7-tips-starters-saving-retirement-131843863.html
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