You should save money so you can be comfortable when you retire. Contrary to popular belief expenses tend to increase not decrease as you reach retirement age. Real estate taxes and insurance on real property will increase. Homes age so they are in need of more repairs and maintenance.
Inflation seems to be on a steady rise, which means you will need more money to afford the same standard of living you enjoy today. Health care cost is escalating and what about caring for your aging parents.
The reasons listed above among others is why you need to start planning for your retirement now. Starting to save while in your 40’s is not ideal but it better than not starting at all. Below are some tips to help you fast track your way to a sizeable nest egg as you near retirement age.
Avoid The Eye Candy
Yeah, yeah – I know all about how tempting buying one of those ultimate driving machines they advertise on TV during the golf tournaments are. But that eye candy depreciates on average 20% when you drive it off the car lot. Don’t let trying to keep up with the Jones’ smother your early retirement plans.
Turbo Charge Your Plans
Those saving goals that you wrote down when you were 30 that you never implemented are no longer valid. You’ve lost 10 plus years that you can’t recover plus you’re lot smarter now. Determine the income you need to fund your retirement lifestyle and make adjustments in your numbers and take some action.
Review Savings and Investment Goals
Sit down with a financial advisor to review your savings and investment goals. Are your goals realistic for your given timeframe? What could you change to achieve better results quicker? Don’t exceed your risk tolerance and remember in the end no one cares about your money more than you do.
Haven’t start saving and investing yet? You should be ashamed. It’s never too late so start today.
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