Retirement Tips for Late Starters By Dave Ramsey

Three Retirement Tips for Late Starters
By Dave Ramsey

Now is the time to get moving!

Are you one of the millions of people who realized you started saving for retirement about 20 years too late?

If so, don't lose your head and start freaking out. Here are three tips to help you.

1. Downsize your lifestyle.
It's a safe bet that you'll need about 85% of what you earned before retirement after you leave your job. If you buy that $5 latte every morning or always wear the expensive, name-brand clothing, I'm talking to you. It's time to get "gazelle intense" about paying off all your debts and living on less than you make.

2. Put off retirement for two more years.
The more you work, the more you save. According to the Center for Retirement Research at Boston College, most people that work just two more years past retirement age can lower the amount of savings needed by about 25%. Plus, the extra income won't hurt anything!

3. Start investing in mutual funds.
If you're 40 and have zero dollars in your retirement account, don't give up yet! By saving just $2,000 a year in a mutual fund earning 12%, you will have $333,866 by age 65—or $428,714 if you wait till age 67! While you won't have the most luxurious retirement, you can draw a decent yearly income from the interest by leaving that money alone. That's roughly $48,000 a year!

If you're a late starter, you need to get moving right now because time is your biggest enemy!
Now is the time to get in touch with the investing professional in your town who Dave recommends to get you started investing or to maximize what you already have. These professionals have been interviewed many times to make sure they give the absolute best advice. Connect with Dave's Endorsed Local Provider in your area.

Dave Ramsey is a personal money management expert, an extremely popular national radio personality and best-selling author of The Total Money Makeover. Dave is changing the face of America by helping people get out of debt and build wealth. Ramsey exemplifies his life's work of teaching others how to be financially responsible, so they can acquire enough wealth to take care of loved ones, live prosperously into old age, and give generously to others. Find out more at daveramsey.com.