It's Never Too Late

Picture of five stacks of quarters. As you look left to right the stacks get bigger and bigger.

It's never too late to start saving for retirement.  It's time to take control of your financial future, regardless of age or current circumstances.  Retirement planning is a process and it can take time.  But no matter your age you can do it.  It's true that when you start early you have time on your side but it's never too late to start.  Anything saved for retirement is better than nothing.

Just because you are starting late does not mean it's hopeless.  Never think that.

Here are a few steps for those who are starting to save for retirement later in life:

1. Think about your current financial situation, make a budget.  List all your assets and your debts.
   
   
2. What are your retirement goals?  Include things like where do you want to live?  Are you going to move to be closer to family, children, grandchildren.  Really find out how much living expenses cost in the new city.  Figure out how much your healthcare is going to cost.  Most people when they retire will get medicare but do you require a supplement?
   
   
3. If you are still working make sure you are maxing out your 401k if your employer offers one.
   
   
4. If your employer does not offer a 401k explore individual retirement accounts (IRAs). Open an (IRA) as soon as possible, this way you can start saving sooner.  Traditions IRAs you get a tax benefits up front.  For example if you put into the traditional IRA 5k a year you get to take 5k off your taxes.  When you pull the money out it's all taxed.  With a ROTH IRA, you put money into the (IRA) with money that's always been taxed.  When you pull the money out, it's all tax free.  It's best to talk with your CPA if you don't know which option to choose.
   
   
5. Individuals aged 50 and older are eligible for catch-up contributions.  Allowing you to put more money into your retirement account if you are over 50. 
   
   
6. Invest wisely, it's important to be understand your risk when you start investing in stocks, bonds, index funds.  But don't shy away from investing because of risk.  Every type of investment has risk.  Diversify your investments to balance risk and return.
   
   
7. Create a Realistic Retirement Budget: Project your future living expenses and create a realistic retirement budget. Consider factors such as healthcare, housing, and potential leisure activities. Adjust your savings plan accordingly.
8. When going into retirement be flexible to make lifestyle adjustment.  You might consider downsizing, if all the kids are out of the house, do you really need the extra room?  Or like I talked about above, are you going to be moving to another city? 
   
   

The key to a successful retirement is consistency and commitment. Even if you're starting later in life, taking proactive steps now can significantly improve your financial outlook for retirement.  You can have a great retirement if you start saving as soon as you can.  It's never too late.

---