If You’re Already at 50 and Have $0 For Your Retirement, There’s Only One Thing You Can Do
It’s OK if you have $0
What’s over the horizon?
It’s your retirement, which is getting closer and closer.
Yes, it’s still a few years away, but now you can see it without wearing glasses.
How are you feeling?
Excited?
Sad?
Uncertain?
Full of fear?
Yes I know, fear is in the walls.
By now, you should have several decades of retirement savings in your portfolio. If not, you will have to work hard to catch up and maybe even rethink what your retirement will look like.
That is what you should do:
Reinvent your retirement
Not everyone will be able to achieve them completely.
If you didn’t save enough for your retirement in the first few decades while working hard, taking advantage of the funding will be a failure.
It’s always a good idea to increase your savings, but you may need to consider working past age 65, deferring Social Security distributions, working part-time, or moderating your plans.
If you live in a high-cost area, consider moving to a lower-cost area. Yes, everyone says that I know.
Keep in mind that the average price in London for a single-family home recently hit $1 million, while the average price of a home in Faro, Portugal costs less.
Take a serious look at how you throw money away for your retirement
The closer you get to retirement, the more clearly you can see if all your planning will pay off.
If you have created a retirement plan, you should have an idea of how much you want to save when that long-awaited day arrives.
Will your current savings plan and expected income, including Social Security, allow you to do this?
If not, it’s time to take another road.
It’s time to make up for lost time
If you are behind on your retirement savings, now is the time to get serious and start catching up.
You must put more than they ask for into your private contributions.
Now that you are in your 50s, you can also take advantage of special catch-up rules that allow you to put more money into these accounts.
Increase your savings. Start a side hustle online
A side hustle is not just for millennials.
If you are over 50, you have a lot of knowledge to pass on. Start writing online.
Now that you are in your 50s, your children are probably close to it.
You may even have saved for college.
Also, if you have paid off your mortgage without getting in trouble with the police, during this decade you may find that you are writing your last check and becoming the true owner of your home.
Since you are already used to living with these built-in expenses, why not divert that freed-up money directly into your retirement account?
Take a slow exit strategy
As you approach retirement, your retirement portfolio allocation should be more conservative and less risky.
You no longer have time to endure sharp market declines.
Forget cryptocurrencies.
If you tie your retirement to risky stocks and crypto that fall 30% or more, you could see your retirement dreams evaporate.
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