You’ve made one of the worst, but most common, financial mistake possible. You’ve been so busy working and raising a family for the past twenty-five to thirty years that you forgot to save up enough money for retirement. Or, perhaps you thought you saved enough, but you spent a whole lot too on college tuition, nice cars, big trips, a country club, and a big house in the burbs you couldn’t afford in the first place.
Now retirement is only a relative handful of years away. That translates into no more paycheck. You lie awake at night wondering what you can do to remedy your financial downfall. The good news is that you can put that big house in the burbs to good use. If you’ve been paying on the mortgage religiously for decades, you can tap into all the equity you’ve built up in the form of a reverse mortgage.
If you’re accepted for a reverse mortgage, you can take your proceeds in one lump sum or you can receive equal monthly disbursements. The best part is you need never pay the loan back unless you leave the home or die.
What are some of the best reverse mortgage lenders you can work with in 2023? Make yourself a cup of coffee, sit down at your laptop, and Google the website reversemortgagereviews.org/. You’ll find out pretty much everything you need to know.
But what are some other ways you can put your retirement savings on the fast-track? According to a recent financial article by The Motely Fool, when it comes to saving for retirement, most Americans have no clue how to go about it the right way. Studies show that workers aren’t saving nearly enough to build up the necessary funds they will require in order to continue living the life they’ve become accustomed to.
A recent survey conducted by Wells Fargo confirmed that nearly 50 percent of workers found themselves having to delay contributing to their retirement savings due to their present financial obligations and challenges.
Likewise a study conducted by TD Ameritrade found that 62 percent of Americans are far behind schedule when it comes to retirement savings. Only 40 percent of U.S. workers surveyed in a EBRI study admitted to having saved only $25,000 or less. That won’t even get you through your first year of retirement.
Now that you’re aware of the bad news, here’s the good news: It is indeed possible to fast track your retirement plan in your middle age years or any age for that matter. Here’s how.
Make Saving a Priority
Says The Motely Fool, there is no getting around the mindset of “save-first.” In other words, you need to think of your retirement contributions as a non-negotiable mandate. Here’s the reality of the situation: if you need to drive a cheaper car, eat ramen noodles for lunch every day, and skip the weekly case of beer to make certain you contribute to your savings, then so be it. This is the exact attitude you need to make your retirement savings program begin to gather momentum.
You should establish automatic contributions to an IRA or 401(k) and increase your rate of savings whenever you get a raise, a bonus, or you succeed at lowering your everyday expenses. Believe it or not, even an increase of $5 to $10 per week will make a significant difference in the long run.
If you’ve already entered your middle years, try increasing your monthly contributions by $100. Over the course of a decade, that extra $100 will turn into a nice chunk of change.
Drive an Old Car
Ditch the thought of buying the Range Rover you’ve been staring at on the lot. New vehicles lose 20 percent of their value during the first 4 years of ownership. It’s better to by a used car and if possible, buy it with cash.
You will be paying more for maintenance issues, but you won’t have a monthly car payment which, these days, can run you $500 +/- per month. Also, the auto insurance will be less.
Live in a Small Place
By living in a humble abode, you save on maintenance, utilities, plus your mortgage or rent will be much lower. A small home means less property tax. Also, living in a small place means you don’t need to buy a lot of stuff to fill it.
Speaking of buying stuff…
Overspending will definitely cut into your retirement savings. Instead, set up a budget. Add up of your mandatory monthly expenses like utilities, rent, plus retirement contributions. Subtract it from your monthly income. Whatever you have leftover can be used for entertainment, clothing, food, and gifts.
Invest for Fast Track Growth
If you’ve entered middle age, you need to take a hard look at investments like Bitcoin, that while seemingly volatile on the surface, can fast-track you to life changing wealth in matter of five or six years. Right now, the digital gold averages around 100 percent growth per year.
But keep in mind, this is not financial advice. You should consult with a financial advisor before choosing any investment be it a more traditional income find, or something relatively new like cryptocurrencies.