If your projected nest egg isn’t going to be enough to fund your retirement after calculating your income and savings, you may have considered a riskier investment strategy. Despite the gap between these two figures, taking on more risk can do your finances more harm than good. You can catch up on the money you need by managing your investments wisely, saving more aggressively, and delaying actual retirement.
Accumulating enough money by doubling savings from your salary and extending your years at work requires the proper use of your 401K and IRA accounts. You’ll also have to add to the amounts you currently contribute with approximately five thousand dollars and a thousand dollars for your 401K and IRA, respectively. If you follow these numbers, you may be able to get a nest egg of $1.3 million if you retire at 68.
Although these figures can be intimidating, you’ll probably be able to afford them if you’re beyond your forties – your funds are usually more stable, your mortgage payments almost completed, and your kids living away from home. There are other advantages to working after the age of normal retirement. For example, an additional three years of working could improve your payouts from Social Security by approximately $500 a month.
Upon retirement, good home equity gives you extra options for catching up: you can move to a house that costs less to purchase and maintain after you’ve sold your old home, you’ll have more cash in-hand, and you’ll be in a better position to save more money after moving to a new location. The cost of living in your new area may also be lower, which can compound what you save even more. If you choose to stay put, tapping your home equity is also possible with a reverse mortgage.
You’ll find many ways to safely boost inadequate retirement funds. Avoid high-risk investments even if you’re at the brink of retiring. Adding to your nest egg for a comfortable retirement can be accomplished with these steps and the advice of your financial planner.
Puritan Financial Group has years of experience in dealing important financial decisions. Puritan Financial Group will listen to you and your loved ones and craft a custom financial solution that supports your life goals.