for Retirement Savings for Retirement Savings for Late Startersfor Late Starters

By Robb Beltran Consulting Services

http://www.robbbeltran.com/2009/06/16/“9-tips-on-retirement-savings-for-late-starters”/

Get in the BallparkEstimate roughly how much money you’ll need to live on in retirement. Don’t get bogged down by conflicting advice on how to calculate the amount.

Calculate itOnce you have an idea of how much you’ll need for retirement, calculate what will be available from sources other than your savings. For example, what is your expected Social Security benefit at retirement age?

Set GoalsSet goals for reaching the amount you’ll need to make up the difference between Social Security, pensions, and any other retirement funds you already have.

Make a ContributionIf your employer has a 401(k) or 403(b) or other voluntary contribution retirement plan, and you’re not already participating, sign up today and try to contribute the maximum allowed by law. Remember that the tax savings on your deductions will soften the blow. If you’re in a combined federal and state income tax bracket of 35%, your contributions will only cost you 65 cents for every dollar you put into your account.

Go for the RothIf you make under the income thresholds, you can contribute to a Roth IRA in addition to your 401(k) or 403(b) plan. The contribution is not tax deductible, but the earnings will be tax-free in retirement. The maximum contribution for a Roth IRA in 2008 if you’re under 50 years old is $4,000 ($5,000 if you’re over 50). $4,000 a year will grow to nearly $208,000 in 21 years at a 7% rate of return, and you will owe no taxes on any earnings in your Roth IRA.

Don’t Be Too ConservativeEven at 45 or 50 years old, you have several decades for your retirement earnings to grow, so invest a large percentage in carefully researched, proven stocks, or better yet, mutual funds.

Consider Relocating or DownsizingIf you live in an area with a high cost of living, moving to

a less expensive area and investing your savings for

retirement could make a big difference in your ability

to amass a nice nest egg.

Work it OffIf you’re worried about ever being able to amass enough money to retire, consider taking on a second job and investing your earnings.

Get out of DebtPaying only the minimum payment on

credit cards is one of the worst financial

mistakes you can make. Start applying as

much as possible to your credit card

balances and once they’re paid off, resolve

to pay the balance in full each month.

You’ll be amazed at how much money it

frees up for retirement savings over time.

GO!

The time to start is now.

Content from Robb Beltran Consulting Services

http://www.robbbeltran.com/2009/06/16/“9-tips-on-retirement-savings-for-late-starters”/