Take Inventory of Financial Situation
Where are you now, and where are you going? Forty-four percent of baby boomers say they “guessed” their retirement savings needs. They didn’t calculate with real numbers what they would need.Analyze your assets. What do you have now, and what assets will be available in 10 years?
Know Your Numbers
When you made a small salary, you probably lived paycheck to paycheck. But it’s incredible how people who have large salaries also live paycheck to paycheck. The more people earn, the more they spend.Budgets aren’t the most exciting mechanism, but they’re vital if you want to know what you truly need and what is just fluff or wants.
Cutting back on excess spending could provide the money you need for your retirement fund.
Your credit card debt, with its high interest rates, keeps you from saving for retirement. It’s wise to pay down credit card debt as quickly as possible.
There are many ways to pay down credit cards. Start with putting extra money toward the card with the lowest balances to eliminate them first. Then, tackle the largest card. But the number one step to help you is to quit using them. Make it a point to purchase only items that you have enough on your debit card to afford.
Plan to Work Longer
Keep in mind that people are living longer. Seventy is the new 60. So that means if you are 60, you have 10 years left in your career. You have one large item on your side to help achieve a retirement nest egg. You can earn an income. You have earning power.When looking at your assets, don’t discount your income. The ability to earn income is your greatest asset. And you have at least ten more years to add to your retirement using this asset.
You can earn more by working longer. You could also start a side gig—anything you can do to bring more income into your household.
Determine Retirement Strategy
It’s time to seriously consider establishing a retirement strategy. If you don’t participate in your employer’s 401(k), it’s not too late. Enroll and then contribute the maximum yearly amount.Delay Social Security Benefits
If you’re grappling with building a retirement fund, consider delaying Social Security. By doing this, you can increase your benefits.For example, the longer you work, the more you pay into Social Security. This allows you to qualify for a larger monthly payment.
The amount you receive will also increase the longer you wait to collect benefits.
Don’t Overlook HECM
Don’t overlook a home equity conversion strategy (HECM). These are federally insured. However, there are several other types of reverse mortgages available.It’s Never Too Late to Save for Retirement
Because of Social Security’s tenuous future, retirement savings is essential. If you’re 60, it’s not too late. Consider working longer. You still have a solid 10 years or more of work life left. And if you have a hobby or interest, think about turning it into a side hustle.Pay down your debt so you’ll have more income for retirement. Those interest on credit cards will erode your retirement fast.
But most importantly, look at what you have and establish a strategy. Meet with a financial advisor and plan your future.