If, when you reach your 50s, you’re freaking out because you haven’t saved for retirement yet, don’t panic.
Though you can’t expect to match someone who started planning in their 20s, you can still do something about it.
To make up for lost time, act like a 50-year-old and think like a 20-year-old. That means saving and protecting the money you have, as well as using technology, creating additional income streams, and cutting spending.
1. Save More:
When you turn 50 you have an advantage because the IRS allows you to save more money in your retirement plans. Since your 50s can be some of your peak earning years, it’s a great time to max out your accounts. In your 401(k), the maximum salary deferral for an employee is 18,000 for 2017.
“After you turn 50, you are allowed to contribute an additional $6,000 in order to “catch up.””
After you turn 50, you are allowed to contribute an additional $6,000 in order to “catch up.” You can also do an IRA if you qualify. How much can you contribute to a traditional IRA in 2018?