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Sometimes, the best-laid plans fall through due to circumstances beyond our control. When we are young, retirement seems like a lifetime away—then, during midlife or beyond, it begins to loom closely in our future. There is no need to panic, though. Follow these tips on investing late in life for retirement to get the ball rolling today.
A word no investor wants to hear: debt. Whether it rules your life, or you have a small amount, getting rid of what you owe others is important before investing for retirement. It may be necessary to keep a mortgage, but make sure to pay off everything else.
Freeing up the cash that is going toward debt and its interest rates will free up investment money and allow for better savings.
Savings accounts don’t allow for great earning due to their low interest rates. Still, find one with the best rates you can and start saving.
Put away as little or as much as you can every month. Even small amounts add up, and more importantly, this practice creates a good habit of saving.
You need money to make money. This idea ties back to getting rid of debt or at least paying it way down. After that—and also after building up savings—it is time to consider some investment opportunities to give you some cash flow and, more specifically, cash flow into your retirement years.
Seek the guidance of a financial planner if you are new to investing. The two most common options are the stock market or real estate investment. At an older age, real estate may be a safer bet than the stock market.
Letting go of a home you raised a family in can be tough. Even so, if you no longer need the space, downsizing for a smaller mortgage and easier home maintenance is a great idea when investing late in life for retirement.
Also, examine your vehicle needs. Can you downsize to one car instead of two or get rid of a gas guzzler that is larger than you need?
Taper back on whatever you can.
Not many people want to hear these words, but it may be necessary to work a few extra years to generate more income that can be saved and invested for retirement.
Take advantage of your company’s 401k if possible.
Again, a financial planner can help you understand how much money you will need to live on during retirement, and you can plan your working years around that.
Try your best to remain positive and forget about the past. Yesterday is gone, and although you may be getting a later start on retirement savings and investment than you had hoped for, it is still possible with a well-thought-out plan.
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