Late Retirement Planning? Here’s How You Can Catch Up

October 30, 2020

Financial pundits will often say that it is retirement should be planned as early as possible. The younger one starts, the easier it will be down the line. However, it must be taken into account that not all people have the ability to start early. Some have other priorities to attend to. There are people who have to support their parents, and some need to pay a lot of debts

The images of retirement are truly inspirational. You may be picturing yourself spearheading a community food outreach program or you are traveling the world. But you need to face the truth that you will need money to be able to do all these.

As you reach the retirement age with some money in their name maybe stressing a lot. They think that it is already too late. You need to tell yourself, though, that you still have time. And you need to maximize it. Here are some tips to get you started:

Catch up on Contributions

If you’re over 45 and you still do not have a 401 (k) plan, you need to catch up. When you are offered this benefit at work, you must think of funding it as large as you can. But if you already have such a fund yet you have gotten it later than the standard time, you need to make additional contributions. An extra $1,000 per year before you reach the age of 55 will make a great difference.

Consider Downsizing

Are you and your partner empty nesters living in a large suburban home? If you’re looking to save up money for your retirement, you may consider downsizing. You can move to a smaller home with a smaller mortgage and lower interest rates. More importantly, maintaining a smaller home can be less expensive. Moving into a new home can also allow you to tap into your old’s home equity, and surely, it will be big, knowing that the value of real estate properties goes up over the years.

Sell Some Assets

Sometimes, you need to look around your property and sell what you can, especially when you do not need them anymore. For one, an antique and family heirloom, such as jewelry pieces or old painting, that no one in the family wants can be sold to collectors. A vacant lot that you own in the countryside that does not have any purpose can be put in listings.

Get Disability Insurance at Work

Planning retirement

The benefits in your job can also be tapped for you own protection. For one, if your company is offering group disability insurance coverage or similar plans, grab that opportunity. The goal is to protect your savings and remaining investments; these sources of funds may be exhausted in case you get into an accident or similar incidents.

Plan Wisely

You may be late to the game, but that does not mean that you will need to give up. There is still time, and you need to make the most of it. Above all, you should learn how to take care of yourself.

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