by Zac Majors
I am 55+ Years Old With No Savings or Retirement Plan: What Should I do?
The best age to start saving is as soon as possible. However, not everyone is as lucky at a young age to start earning enough to save for retirement, or might have responsibilities that force them to live paycheck to paycheck.
For those of you who’re 55 years old and worried that you don’t have enough time on your hands to create a comfortable, if not luxurious, retirement plan for yourself, we’re here to tell you differently. You still have enough time to start saving enough to create a fund for yourself that can help you not just retire well, but also perhaps make a legacy!
Here, we’ll discuss what options you have, but before we get into it, we would like to mention that this isn’t going to be easy. You will need to be committed and ready to make some very, very hard decisions. If you can sacrifice an adequate amount and invest it smartly, you’ll eventually be able to retire comfortably.
So, let’s dive in!
Stop Feeding the Birds
Children are, and always will be, your top priority. From making sure you buy them what they want all the way to paying the bills for them; you will be inclined to do it all for them. This is especially true if you’re a grandparent.
However, for the next few years you’re going to have to make some very hard decisions. If you continue supporting them unconditionally, you will ruin your retirement security. If you can’t afford it, don’t take any loans for the sake of your child’s education or that new laptop they want.
Think of it this way; if you save enough now, you’ll have enough by the time you retire to be able to have a diverse portfolio, which will grow and you’ll be able to create a legacy for them. Your children will thank you for that in the long run!
Have a Social Security Plan? Don't Touch it!
If you can, try to continue working until you’re 70 – because that’s when your social security benefits are at the max. For those of you born in 1960, your monthly benefit at the age of 70 will be 77% more than what you’d get if you start several years earlier, i.e., at 62.
Retirement Plans - Contribute As Much as Possible
If your employer is offering a retirement plan such as a 401(k) plan, remember that employers with offer to match your contribution up to a certain limit. Make sure you contribute the maximum amount so that your employer is also contributing the max. As your salary increases, so will both of your contributions.
Don’t leave any money at your work desk!
Invest for Growth - Long or Short Term?
The money you save now will support you for twice the number of years you save for. For example, if you start saving now till the age of 70, you have 15 years. This money should be able to support for you 30 years if invested smartly.
It is always a good idea to get expert advice on your investment ventures. At Centric, we have a group of dedicated experts who have helped many individuals plan for their retirement; even if you’re close to retirement and have nothing to show for it. We recommend you get in touch with our experts and see what they have to say.