Avoid the Roadblocks that Prevent Early Retirement
by John Bearss, Retirement Specialist
This week I will explore Roadblock Number 4 according to Larry Barrett’s article in the Financial Planning Magazine entitled the 7 Roadblocks to Early Retirement.
Roadblock #1 – Not Saving Enough, Early Enough (Listen to Roadblock #1)
Roadblock #2 – Ignoring Free Money (Listen to Roadblock #2)
Roadblock #3 – Failing to Diversify (Listen to Roadblock #3)
Roadblock #4 – Starting to Plan Too Late
One of the biggest mistakes people make is waiting until their 50s or 60s to start planning for retirement. Waiting this long typically means that more sacrifices will have to be made and sometimes these sacrifices can be hard to bear. Those in their 50s and 60s often assume that since they’ve been putting money into a 401(k) or other employer-sponsored retirement plan will take care of them throughout their retirement.
However, even with generous employer match and compounding, most people need more than just a 401(k) to comfortably retire. Remember, the more income streams that you can generate the better your chances will be in retirement.
If you’re over 50, add the $1,000 “catch up” contribution to your retirement savings plan. If you need to, open up a new account. Take a look at how assets are allocated and talk to a financial advisor about risk and reward.
Thank you for joining me this week for your Retirement Minute.