50+ and Haven't Saved for Retirement? Here's What to Do
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- čas přidán 28. 05. 2024
- Saving for retirement can be a struggle in the best of circumstances. For those 50 or older who have saved little if anything, retirement can seem impossible. In this video I walk through seven concepts, strategies and tools to help those who have gotten a late start save for a comfortable retirement at a reasonable age.
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Time Stamps
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0:00 Saving for Retirement When You Get a Late Start
1:00 FIRE Movement
3:50 Reducing Housing and Transportation Costs
7:40 One And Done (Reducing Small Expenses)
11:17 Prioritize Debt vs Saving
14:30 Start a Side Hustle
16:32 Motivation
18:08 Free Tools
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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Ay 64 I am right on track to retire comfortably at 104
😂😢😅😅
😂 Thanks for this, James
😂😂😂
Well I'm at late,starter at 54 so I'm right on tract to retire at 201 😂😂🎉🎉
same
i propose a different mindset for late-starters…especially if you are over 60.
the average life expectancy across the board is approximately 86….and those last years are often are not good ones.
i feel that late-starters should focus as much on their physical and mental health as they do on finances. it makes no sense to panic and begin a lifestyle of suffering and sacrifice for a retirement that you may be in no condition to enjoy if you get there because you suffered too much to get there.
a friend passed away last month in his mid 50s. he worked 60 hours/week and maxed out his retirement accounts every year….and he had a heart attack and died and left that money in the bank .
at this point, you should focus on quality of life and wellness now as much as planning for the future because you may not get there.
I absolutely agree 100% with you.
👌🏿👌🏿👌🏿👌🏿👌🏿👌🏿👌🏿
Yup, it's all about balance. Killing yourself to retire defeats the purpose.
My approach is different from some. I don't plan to retire. I want to get to a point where I can retire, and I'd like to get to that point before I'm forced to retire.
Retirement was never my goal. My goal is to enjoy my life. With enough money I'll have more flexibility when it comes to work.
and a new corvette and boat in the driveway..@@TheFirstRealChewy
I believe you still need to put some aside if you can, but that makes so much sense what you say - especially when you put it relative to the age gap 🙂
I agree stay positive its important fur morale. I started late at 47 and. almost 65 and only 215,000 saved plus lots of home equity. Its not much but l just have to remind myself keep teying your best.
This what I did! Retiring in 21 days at 61 to travel full time.
I just ran across your channel and really glad I did. I’m self employed, 50 years old, and lost as far as retirement. Thank you for sharing.
Thanks so much. I really appreciate the focus on what you can do. There’s a million reasons people start late or get behind. For Canadians, Gail Vaz-Oxlade wrote a helpful book “Never Too Late”
Rob, thank you for the shout out to our new podcast Catching Up to FI. This very important topic to address. There is such a large “silent generation” of late starters that need to know that they are not alone and it can be done. Thank you so much for all you do for financial literacy.
Oh my God Rob I've been waiting for this topic to come up. I didn't even understand until I was 54 that I could invest and save for my retirement. I saw everybody getting there for Wednesdays and thought I don't need that because I'll have social security. Now I'm trying to scramble and do whatever I can to save
Your not alone, 54 and I've only just got 2500.00 saved. I'm still putting 100.00 away a week in emgency but yh, in same boat. You can't ever catch up, it's decades gone, but at least if you have some behind you for an emergency it does provide a comfort barrier and if pets, pet insurance and car insurance ♥️
Glad someone is addressing this for older people.
One car family for 17 yrs. Same car too!
We did it, its been easy and we save $9,000 a year!!
😊 great news..love it
Now is a great time to be throwing money into index funds. Big sale going on.
$1600 a month and I need to put more!
Hi Rob, great episode. For those of us over 50, these videos are so helpful.
My wife and I focused heavily on decreasing outgo using most of these techniques. We sold a car and used the equity to pay off debt, got rid of cable and went to internet only, focused on getting down to four walls only with that cost being as low as possible. We live on less than half of our income, with a short term goal of paying off the house before we draw SS in a few years.
That's awesome Tim
Getting rid of cable is a major plus. My bill kept going up every 6 months.
Thank you for this video Rob, I really appreciate it!
Great video Rob. Just wanted to mention the background, camera angle, and lights all together looks really good. Great setup!
Number 6 is challenging, thanks for the reminder to stay positive!
Thanks! for covering the topic with such positive outlook. I like your blog and podcast suggestions
This is great!
Thanks for the video, Rob. It feels good that I'm already applying all of your 7 principles!...
Excellent clip Rob! I’m forwarding this to a friend that this can help!
Great video, thank you! I’ve been decluttering in anticipation of downsizing. Selling on Facebook Marketplace has worked well. It’s not a lot of money, but every little bit helps!
Thanks for covering this. I’m playing catch-up in my mid-forties, so I appreciate the focus on older investors pursuing FI. I’ve been saving about 50% of my income and hope to retire between 57 and 62. An important focus for late starters is taxable accounts. You quickly run into limits in 401k and IRA investments, especially if you have a higher income. My taxes have gotten a lot more complicated since I started using taxable accounts.
While the official "FIRE Movement" may have only been around for a decade, some of us were lucky enough to have read Your Money or Your Life in the late 1980s. Due to that, we are in a great position today.
So reassuring and informative, Rob. I have your book 📕 but I haven’t had a chance to dive in yet. I hope you’ll do a lot more videos on this topic. Another idea I like for this is approaching things with the FIRE / Dave Ramsey “gazelle-like intensity.” It’s amazing what a world of difference that can make, as well. I feel if we change our mindset, many of us might even be able to completely change our financial situation in as little as 8-12 years, though I don’t think it’s worth it unless you are also truly enjoying your life and the process along the way. While it can be challenging, I do think it’s possible to do both things simultaneously.
Rob, I’m navigating my financial intelligence journey and I’m grateful for the gems of wisdom you share! I’m a baby boomer who assumes SS won’t be around for me; however, I am becoming more and more aware of how I can be interdependently and financially fit through the ebbs and flows of life and the market. Thanks again, gratefully!
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Great show....is there any way you could increase the size of your pointer. I always have trouble searching the screen to discover where you are pointing. Keep up the great program
Thanks 😊
Subscribed
The Mr. Rogers of investing. Subscribed :)
I really appreciate a realistic "how to catch up" video for older people.
thank you
Rob, thanks for addressing this topic but one thing that wasn't covered is what kind of funds should we 50+ late starters invest in and in what percentages? Should we even bother with bonds? At this late in the game don't we need to be extra aggressive in order to make up for lost time?
Rob… GREAT to talk about getting arms around spending and budget first. Playtest what it would be like if you only had ??? To spend each year, and throw all the $ above the platest spending into savings and investments. For tracking, planning, I use multiple methods.. spreadsheets is the rock-base for my numbers; but I also use New Retirement. You can also import a google sheet doc to excel, if that is your preferred spreadsheet software.
Glad I found your videos a few months ago. You speak so clearly and to the point, no hype or bs, happy subscriber, thanks.
Just realized lately I can have a "self directed" IRA, I was never comfortable with leaving my retirement to the whims of the market or chaos in the world so I'm just now opening an IRA at age 56, better late than never
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
You mentioned you were going to take those footballs out of the cases... also don't forget to burn them, go blue :) ... love your content regardless sir.
Yeah, #6 is a tough one.
9:28 Rob, thank you for your content, I am learning a tremendous amount! Why doesn't the 25x calculation consider inflation when anticipating future nest egg needs. Say if inflation was a steady 2% and you needed to retire in 10yrs, instead of $1 Million in todays dollars a person would need closer to $1.25 Million. Thanks in advance, sorry if it's a dumb question, I am new to this headspace.
Thanks for the great video. I am wondering, should I go see a professional to get a plan specifically geared to me? if so , who would this be (I'm in Canada) ?
Hey Rob, what options are available for non-residents to open an account and invest in an index fund like vanguard?
I'm 56 and on SSI , I get $950.00 a Month and $112.00 in SNAP . both Medicare and Medicaid with Extra Help , I have One Year left of an SNT and then I'll be able to get My Car Title and House Deed . My House is a 1903 Duplex with 400 k worth of Estate Items .
Can I quit SSI and Keep my HealthCare and 2 Years of SSI Income While I Try Working again ?
IDK what I can Do .
Careful, your side hustle example computation assumes you make that $1,000 for all 25 years of your retirement which may not be reasonable.
True, which is why I pointed out that with Empower you can set the years you'll earn the extra income. Perhaps I should have made the point more explicitly.
Rob, I’m curious what you think of the Fidelity funds with super low expenses. Would you replace VOO with FXAIX - Fidelity 500 Index Fund?
Great video Rob. The only thing I would say about Dave Ramsey is that his plan is to get out of debt in two years or so and definitely not a decade I do get your point though 😐.
depends on your income. likely if your 50 and no savings or investments you likely made no money in your life so paying off debt will be next to impossible
If your debt interest rate is higher than your investment rate, then pay off your debt. Otherwise invest instead.
im an 18 year old right now and worst case ill be able to comfortably retire at 180
4:08 can't believe he missed taxes as being one of the biggest expense!
Taxes is my biggest expense.
He mentioned 401k. That is a huge tax saver. Outside of that not much we can control with reducing taxes. Unless you have self employed side income and want to squeeze out every expense.
Taxes and health insurance
I have a friend in this position and seeing them try to balance between frugality and optimism/quality of life as you say in your last point is a huge component of the process. On their behalf: Any benefit to catch up contributions to a Roth IRA for someone without an employer sponsored retirement account? If so, what time horizon till retirement (or withdrawal date) or total possible contribution amount does it even make sense?
Good luck trying to fi d cheaper insurance anymore. I ve tried and nothing. Insurance is going g to get us all.
What about health insurance
Thought not ideal, investing in a few high-yield dividend ETF's may be the emergency answer, especially if you have a Roth. $100,000-150,000 in the right ETF(s) could provide the necessary income you need to survive. Again, not ideal, but if you're in your 60's, it could help if you can make $30-40k per year in tax-free dividend income.
Except dividends is not free income.. it's not extra money and lower the value of a stock
High yield savings accounts and CDs are probably a better idea
This video just warmed-over platitudes. These ideas not nearly powerful enough. Need to think creatively and take chances.
great information. i would suggest if you are not already, hide all personal info.
What if you don't have a 401k and you are 51 years old self-employed owning a house with no saving?
Hopefully find someone to marry but live on one income
Turn your house into a money maker. Rent out the basement.
Yep getting rid of the high maintenance house.
And replace with what?
@@Essenceofbeauty- sell house- moving in with family and paying room rent. Bank all my paychecks for 10 years. And see where my investment accounts land.
@@mollygiovanna1095 ok
It’s unfortunate, but it’s just a matter of time before the government starts dipping into your savings retirement. You’re not dealing with honest people anymore.
Those in their 20's and 30's are not in a position to save 40 or 50 percent of their income unless they're in teh top 1% of earners or live in a caravan or have mom and dad as a bank... Wtf.
I am so screwed
I feel the same way. I have a good paying job but it’s just enough for a meager retirement. Not enough for a secure retirement. I’m not looking for a lot I just want to be safe. I don’t need to rich.
@@mollygiovanna1095just circled back to video and saw your comment…keep fighting the good fight…hope you are doing the best you can…it’s a never ending battle
People who haven't saved until the are 60yo are going to have to rely on social security unless after 60 yo they make 1.5 million per year due to loss of compound interest
Make sure you account for taxes.
I don't own. a home or have a car. I rent--not above my means. RENT is so expensive! If you simply cannot chip away at any of your expenses, none of this advice applies. And yes i work full time.
If a person sets a goal to retire at 70 and max out his IRA from 50 to 70, he can retire a millionaire positively.
You mean a 401K?…not sure one could with a $7500 IRA for 20 years 50-70…maybe with both
401k..I.R.A and HSA.. Max all three out from 50 to 70 and you would definitely have a good retirement
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst
My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
🤘🏻
Most FIRE folks prefer to invest in VTI, VOO or their mutual fund versions. Would this apply to the late starters also?
Still should. Over 1 decade youll beat around 90% of investors.
So if you're 60 maybe not, but 50 would work
@@bartz4439 if you're 60 you should still be planning for another 30 years
Yes but as you get close to retirement add fixed income
So many people I know have simply stopped investing in their retirement account. For various reasons.
A “truck load” of savings by getting rid of a car… on FIRE with the dad jokes today huh?
wait so usa doesnt pay retirement money?
I’m 55. Unfortunately, I don’t believe our inflationary environment allows us to simply apply a dollar amount to our retirement needs. I feel sorry for the people that decided in 2019 the savings amount needed to live. I’m looking for investment/income opportunities which move with inflation.
I truly feel I would need 30% more to retire today 😬 vs 3 or 4 years ago.
You do not withdraw 100% of your savings on day one of your retirement. In order to keep up with or even outpace inflation, you must continue to invest in a diverse array of products that aim to do just this. Further, you must strategize on how to withdraw and from which account to withdraw in the event that there is either a downturn in a market or an inflationary period, even one as extreme as this.
Hi Rob. How can I send you a question?
Hi Karen, Rob's moderator here, disregard the whatsapp/telegram spam post, Rob will never ask for money. You can ask Rob a question on his Monday night livestreams. Subscribe to the channel and hit all notifications, so you are notified when he goes live. You can also sign up for his newsletter, the link is in the video description above.
This was really not very helpful.
The government will take care of you, just apply for assistance...
Hello government? I’d like to get my “assistance” now, thank you. 😂
I don’t think the author understands the mindset problem that beset a person who is in that situation. Also, whenever he refers to a 20 year time line from age 50 has a world of employment and income challenges. This video premise is aloof.
So your solution is just not to try for there is no hope. Talk about aloof!!
@@GoKU-xx2vg No, rather focus on solutions to the actual source of the problem. ex.prescribing pills vs performing surgery.
But then again I guess he is just doing his best to handle a tough societal uptrend. Besides who want to watch a video that says, yea yer screwed. Ha
What if your employer doesn’t have a match? Should you still contribute if you are over 50, or is they a better option to save and grow your money for retirement?
Are you contributing to your Roth? I would maximize my ROTH before contributing to a 401k with no match.