Saving Strategies For People Nearing Retirement

shutterstock_58785163Retirement can mean different things to different people. Some who are near retirement may fear that day coming if they are ill prepared. Some welcome that day knowing that they have enough funds set aside to enjoy living a comfortable life in those golden years. It all boils down to saving enough for retirement. But while it may help if you start doing it early in life, it is never too late to save up for retirement. You can still play catch up in the saving money department even if you are around your 50’s. Here are some helpful saving strategies you can consider.

Expect to work longer.

If you have a lot to catch up in terms of building a retirement fund, the best way is always to have more time to do it. For someone in his or her 50’s, this will mean working longer hours or even postponing retirement for several years. You need to increase your savings and lessen your expenses as you try to add longer working hours into your schedule. While it may not always lead you to a comfortable retirement, this can help you save up enough to make it through several early years of your retirement.

Take care of your debts early.

Your debts may be one of the things preventing you from saving more for retirement. It can even greatly affect your quality of life if you still have debts to take care of during your retirement years. The earlier you can pay off all your debts, the better. Make sure that once you pay them off, stay in the clear by not creating additional debt through your credit cards or taking out new loans. Staying clear of debt can help you save up more money for retirement that will otherwise just go to debt payments.

Place investments in areas of growth.

When you do save up for retirement, make your money earn more for you by investing them in areas where they can further grow. Placing your money in safe but non-growth Certificates of Deposit may even work against you when inflation kicks in. You will have your non-performing assets only useful once you withdraw and make use of them. But if you place them in investments where they can grow such as stocks and securities, then you can help keep your fund earn while they just sit there. But it may not always be that easy. Make sure that you try to invest in stable but growing industries and stocks to ensure that your money will continue working for you. You must also remember that when investing in stocks, you do not really lose out until you plan to sell them. You might be losing “on paper” when the market falls, but your investment is still there, always with the potential to stage a comeback and grow.

 

Posted by Ardent Editor on May 19 2015 in Financial Planning Tags: , , , , ,

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