There is often panic among those who have not been saving enough towards their retirement. Their saving ability has not been at the level they had hoped and they have not been able to invest in their retirement as they should. Many people will just give up too easily and figure if they haven’t started early, why bother starting at all. Being too old to invest is a complete myth that many people buy into and, as a result fail to make the right financial choices for their future, no matter how close their future is.
The good news is being too old to invest is a myth and you can start investing right now to prepare for a better future.
Look at the Realities of Today
The reality is you are responsible for your financial future and you can no longer depend on the Social Security funds to be there for you when you are planning to retire to ensure your financial needs are taken care of after you stop working. As many people are living paycheck to paycheck, finding it hard to have ‘extra’ money to save, there is less saving and investing in one’s future. Even if this has been your situation for much of your working life, you still have time to turn things around.
Start Planning Now
To properly budget your income you should start including retirement savings in your daily plans. Even if you have to cut out some of your current expenses, the sacrifice will be worth it in the long run. Experts recommend putting your cash into retirement vehicles before you save for other things like college tuition. As there are loans and financial aid available for perspective students, no such financial help exists for retirees.
Working individuals are encouraged to start stashing $5,000 into their retirement savings each year starting with their first job to ensure they retire with upwards of a million dollars. As a young worker, you do have many more options for saving towards retirement with smaller amounts being put into savings and the ability to take more risks with your investments.
As an older worker headed towards retirement, you will have to invest more of your cash and likely will be advised to take less risk with your money. If you feel completely overwhelmed with the prospect of investing and retirement savings, it is no excuse to do nothing. Consulting with a financial advisor can help get you on the right path towards your future retirement goals. You can also utilize the many online retirement calculators available to see for yourself where you stand and what you need to do.
Consider Your Options
Eliminate Your Debt Load
If you are living paycheck to paycheck and still have a lot of debt on your plate, now is the time to get serious about eliminating the debt for good. This will no doubt take a lot of focus and active participation but allowing yourself to live steeped in debt will only make your retirement years a financial nightmare. In addition to getting serious about investing, you also need to get strict with yourself about all other financial aspects of your life. You should consider scheduling some time with a debt counselor if you currently see no way out from under the weight of debt.
Downsize Your Life
Where you live is likely one of your largest expenses. By downsizing your current home for one more financially manageable, you can take away a lot of your debts in order to put more into savings. In the same vein, you may also want to consider eliminating other heavy expenses such as selling your second vehicle or trading in for more affordable model. Wherever you can cut costs in your living expenses, you can free up more cash for your non-income earning future years.
Plan to Stay Employed
If you are physically able to continue working after the age of retirement, you should plan to do so. This will allow you to continue earning income, continue investing your cash, and allow you to keep the benefits you have through your job including Social Security and matching retirement funds from your employer.
It may take some difficult strategizing and longer years of employment but you can invest enough to live worry-free during retirement. By starting out now rather than procrastinating out of fear or embarrassment, you can do a lot to turn your future financial situation around.