Getting a late start on retirement - AmericaNowNews.com

Getting a late start on retirement

 

If you're in your 40's or 50's and haven't managed to save much for retirement, don't throw in the towel! You can do it - but it won't be easy.

When you're young, time is literally on your side, thanks to the beauty of compounding. When you get a late start, it isn't going to be as easy as eating out less often. 

You need to start saving at least 15-20% of your gross income - more would be better!

If you have high-interest credit card debt, tackle that first. 

Then, make sure you're maxing out contributions to your company's 401(k) plan. You're allowed - by law - to salt away up to $22,000 of your own contributions, if you'll be age 50 by the end of the year. Otherwise, the ceiling's set at $16,500. 

If you don't have a 401(k) plan through work, look into an IRA. If you don't have an employer pension plan and are at least 50, you can put away up to $6,000 pre-tax a year. 

Now for some tough love: You can't do this stuff if you're living paycheck to paycheck. If you are, you need to either spend less, or earn more. Think about a second job, maybe some part-time consulting, if you have the skills. Or think about downsizing.

Copyright 2012 America Now. All rights reserved.

 

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