Too late to save for retirement?

save for retirement

Save For Retirement

Everyone knows, or has been told, that the earlier you start saving for retirement the better off you will be come the magic age where you can stop working a 9-5 job and begin drawing Social Security.

We are told about the “rule of 72” whereby the money you save for retirement will double every X number of years based upon your expected return on your investment. For example, an investment that averages 6% would double approximately every 12 years ($1000 after 12 years at 6% rate of interest would be $2000).

Needless to say if you begin at age 18 with 40 to 50 years ahead of you, your money would double at least 4 times by the time you hit Social Security age. We also assume you will continue to add to your nest egg by investing on a regular basis in a 401k, Individual Retirement Account or some other vehicle to save for retirement.

All well and good if you are under 30. But if you’re over 40, say, is it too late to save for retirement?

I can assure you that no financial planner who is commission based is going to tell you it is too late. What if you HAVE been saving religiously most of your life and like many of us have seen our investments tank due to the economics of the stock market. After all, aren’t MOST retirement plans based upon investing in mutual funds, a stock-based vehicle?

I know for a fact that the last four companies I worked for mutual funds were the ONLY investment vehicle available to me through my company 401k. Now I’m no Warren Buffett and chances are you aren’t either. I don’t have the time, expertise, assistance that Mr. Buffet has available to help me make decisions on what mutual funds to purchase to save for retirement. In fact, I can’t get company representatives to give me financial advice as they aren’t certified financial planners.

What’s a person to do? Especially if I’m over 40 or 50, looking at a portfolio half of what it was four years ago and not a lot of hope on the horizon? What if life has gotten in the way and I’ve had to take money out of my retirement savings or take loans because I’ve lost a job or taken a cut in pay?

Is It Too Late to Save for Retirement?

In my opinion, the answer is NO. It’s never too late to save for retirement. But let’s redefine what we mean by saving.

If I am over 40 and all I do is put money into the stock market hoping to get a decent rate of return it could be too late to see substantial returns. Just go back to the rule of 72…it’s simple math.

But what if I do something else to save for retirement, in addition to investing in a 401k or IRA.

What if I start a part-time business as well?

One of the big draws to investing in 401ks or IRAs is the tax savings. Owning a business can give me tax benefits.

If start a low cost online business to help augment my current income and build the business over a number of years while still working can I create enough RESIDUAL income or additional income to ADD to my retirement savings?

My friend Ray Higdon recently posted a blog on his blog site about what a top small business would be, traditional or multi-level marketing. I would suggest if you are wondering or considering how you can save for retirement if you are over 40 (it works if you’re younger too) you might want to read his article. See Ray’s Post HERE.

It’s Not Too Late to Save for Retirement!

If you shift your paradigm from investing strictly in your company’s retirement plan to augmenting your retirement savings with another stream of income…a home-based business it’s not too late. In fact it’s never too late to begin investing in YOUR business. The returns on your business can greatly exceed what you might achieve simply trusting in a traditional plan.

Save for Retirement by investing in yourself.

See you on the beaches of the world!

Ready to Start Making REAL MONEY with a Home Business? CLICK HERE

 

 

 

Keith is the resident writer and troublemaker at Empowered Pros.
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