15 December 2011

50 and No Retirement Savings? Here are Some Tips

People tend to place less value on a reward in the future than a benefit today. Time is of the essence and this holds true even for retirement savings. Everyone is aware of the importance of retirement saving, but they fail due to certain reasons mainly due to insufficient funds. People in the age bracket 35 to 44 are most likely to overspend, to have debt and worry about it, and are the furthest behind on planning and saving for retirement. They consider children’s education as more important than retirement funds. Currently more Americans are finding themselves in their 50s and 60s with practically no money saved for retirement.


Investors of all ages have suffered. But for those close to retirement, it's been especially tough, because they're faced with taking distributions from investment portfolios. If you are faced with such dreadful situations of no retirement saving then you need to make a plan for the next 15 to 20 years

Start Saving Right Now



The second you earn an income, you should put some money aside for retirement. It isn’t that hard, just make saving a priority. The younger you are, the longer time you have to save, thus to reach a certain amount you have to save less each month. To reach the same amount when you start ten years later you need to put in much more each month. If your employer provides with a retiremnt plan, then grab this opportunity. Make sure you at least save enough to qualify for their matching contribution.

















Maximize Your Investments



Saving for retirement sounds daunting, but finding the money might be easier than you think. It’s important to remember that even small contributions can add up to big savings. Try to minimize your taxes. Learn what is and isn't taxable so you can keep more of your hard-earned money for yourself. Learning more about the effect of your asset withdrawal rate and life expectancy on your retirement savings can help you develop or refine your income strategy.



















Downsizing



One of the best way to supplement your retirement saving is downsizing. Downsizing can reduce utility bills as well as mortgage payments. Can you sell your house and live someplace cheaper? Can you trade your car for something cheaper, or lose it altogether? If you don't need all these comfort you can plan on cutting down this to the maximum that will help you save more of money which can be transfered to your retirement saving.



















Plan on Working Longer



he difference between how much you have saved to retire at 65 and the amount needed if you wait until you’re 70 can be enormous. you have to start sacrificing on your lifestyle to save more. Live within your means and on a stringent budget should be your focus. The place you are currently employeed at, if you love your job and your boss is willing to offer you job even after our retiremnt consider strahing your working years.



















Get Professional Help





There are many choices for retirement investment planning that even the most ambitious individual can feel overwhelmed. An investment advisor might be good at helping you decide your asset allocation and selecting specific securities or mutual funds. The ones who are in thier 50 would need a professional advice if they hadn’t found investments intimidating.