Did you put off retirement planning just a little too long? Well, here’s some helpful advice for playing catch-up to ensure your financial security.
- Maximize contribution levels. Most retirement plans have a catch-up provision, which allows those age 50 and over to contribute an additional amount above the general limit.
- Adjust your investment mix. Are you at your optimal mix based on your age?
- Invest outside your plan. If you’ve maxed out your 401(k), open an IRA. If you’re married, you and your spouse may open separate IRAs and both contribute the full amount permitted by law if you are eligible. Check out annuities, municipal bonds or municipal bond funds.
- Continue to invest once you retire. If you don’t use all of your minimum distribution for living expenses, you can invest it in a regular taxable investment.
- Reduce expenses. Funnel the savings into your nest egg.
- Increase income. Take on a second job or work extra hours.
- Aim for higher returns. Invest in a little riskier investment. Don’t invest in anything you are uncomfortable with, but see if you can’t squeeze out better returns.
- Retire later. You may not need to work full time beyond your planned retirement age. Part time may be enough.
- Refine your goal. You may have to live a less expensive lifestyle in retirement.
- Delay taking Social Security. Benefits will be higher when you start taking them.
- Make use of your home. Rent out a room or move to a less expensive home and save the profits.
- Sell assets. If the assets are not producing much income or growth, such as undeveloped land or a vacation home, sell it and invest in income-producing assets.
The information provided in this page is not intended to be legal or tax advice. You should consult your attorney or tax advisor for information that relates to your specific circumstances. $25 minimum opening deposit on IRAs. A penalty may be imposed for early withdrawal.
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