Were you late to saving enough for retirement? Let’s talk through five areas where you may be able to make up the difference as a retirement savings late bloomer.
Are you feeling behind where you should be when it comes to retirement savings? On today’s episode of the podcast, we talk about what opportunities late bloomers have to reach their retirement goals. With a little bit of extra effort, you can get to where you want to be when you retire.
Anybody over 50 can make catch-up contributions. For many people, these are your peak earning years and a great time to invest more into your retirement accounts and your HSA. David shares the extra amount you can put away for retirement, that may turbocharge your retirement savings.
As you get older, so do your kids! Once your kids are no longer living at home or dependent on you financially, you may have more room in the budget to save. It’s important for you and them to have that opportunity to become financially independent once they get out of college.
Do you still have debt? Credit card debt eats away at your financial well-being and your financial net worth. If you have a car loan, that’s perfectly fine if it’s within your means and at a low interest rate. Finally, you may still have a mortgage. David helps clients break down the monthly statement into four pieces: principal, interest, taxes, and insurance. By the end of your mortgage term, there is very little going toward interest. Once you pay it off, you’ll still need to pay for insurance and taxes.
There may be opportunity in downsizing your home. Once the kids have moved out, you’ll likely need less space and want less maintenance. Be careful though to not just buy a smaller house without actually providing a savings to your budget.
Finally, once you’re retired, you may still want to work. This could be a part-time job or consultant work that keeps you active and continues to bring in a paycheck. Consider if this might be a good opportunity for you, your finances, and your fulfillment.
Listen to the entire episode or skip ahead using the timestamps below.
0:28 - What should David do with all his Halloween candy?
3:45 - What should late bloomers do?
5:02 - Add to catch-up contributions.
7:16 - Kids are coming off the payroll.
9:20 - Less debt is best.
14:20 - Downsize your home.
16:37 - Add a twilight career.
“There are some opportunities to turbocharge your savings, what you’re feathering your own nest with, once you turn 50. "
– David Dickens
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CONTACT US
OUR LOCATION
10975 Grandview Drive
Building 27, Suite 190
Overland Park, KS 66210
Get Directions
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