No one wants to be behind the eight ball on retirement savings – especially past the age of 40. So, let’s say that you are late to the game of retirement savings. Maybe you had other financial obligations – such as putting kids through college – or perhaps you just procrastinated. In any case, you want to be able to retire comfortably. So, what you can you do to catch up?
Are you interested in starting a second career or home-based business? If so, you can use the income from this endeavor to boost your retirement savings. Added bonus – the extra “job” could turn into something you’d want to continue doing after you retire. You could also be eligible for tax-deferred SEP or Keogh plans for self-employed retirement savings.
Get Rid of Unnecessary Expenses
Take a good, hard look at your spending habits. Where can you save money? Are you spending $35 a week on lattes? Remember that spending is just a habit and it can be broken just as new habits can be formed.
Squeeze Out All Potential Income
Do you have a garage apartment or other space that could be rented out? Maybe there are antiques or other valuables in your attic that you could easily sell for cash. Look around and you might find “lost money” in places you never expected!
Bank Your Raises
Every time you get a salary increase or bonus, put that money in your savings. It is the most painless way to save extra income because people tend to spend up to what they have in their paychecks. If you don’t have it, you won’t miss it.
Eliminate All Consumer Debt
One of the simplest ways to recapture money that you can funnel into retirement savings is to pay off credit card debt. Pay off the debt with the highest interest rates first, then use the extra cash you save to pay down everything else. Never spend more than you earn and break the cycle of using credit.
If you are behind on saving for retirement, don’t be too hard on yourself. Remember that it’s never too late to start saving. Some of these strategies seem small, but they will have a big impact over time. Stay positive and watch your savings grow.
Uwharrie Investment Advisors is a subsidiary of Uwharrie Capital Corp and an affiliate of Uwharrie Bank.
Retail brokerage and insurance products are offered through Private Client Services, LLC (2225 Lexington Rd., Louisville, KY 40206; phone: 502-451-0600). FINRA and SIPC member. Operates under the marketing name of Uwharrie Investment Group. Private Client Services, LLC and Uwharrie Capital Corp., along with their affiliates and subsidiaries are separate, distinct, and unaffiliated entities.
Securities and insurance offered are not bank deposits, not insured by the FDIC or any other state or federal government agency, not obligations of or guaranteed by any financial institution, and are subject to risk and may lose value. Risk(s) will vary depending on investments made by the client, a Uwharrie Investment Advisor Representative will review these risk(s) with the client prior to investing.