It's Never Too Late
Even if you're in your 50s with nothing put away for
retirement, there's time to do something. That's especially true if you're
still working.
Start Saving 10% Now! Figure out a way of freeing up now a
decent chunk of your gross income every month. Put it into some kind of
savings. This can include paying down high-interest credit-card debt.
Grab Those Tax Breaks. Put the most you can into tax-deferred
accounts, either a 401(k) offered by your employer, or if none is available, an
individual retirement account (IRA) that you open yourself at a mutual
fund company or brokerage. You save the income tax this year on anything you put into these accounts.
So late in life, experts say you're better off to start
investing in low-cost bond mutual funds. Then you can decide on an appropriate
conservative allocation between equities and bonds. Just don't gamble on
high-risk investments to "make up for lost time."
Use the Magic of Compounding. True, you're not starting
retirement savings in your 20s or 30s. But even if you're 10 years or less away
from retirement, you hope to live a long time after that. So at least some of your
investments will be able to compound their returns for 20 years or
more.
So yes, it is never too late to start your retirement plan.
Do you need some help setting it up? Call me for a FREE evaluation of your very own financial situation. Don't postpone it, call me right now.
Jesse Alvarado
(562)822-5565
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