Is it ever to late to start planning for your retirement?

Discussion in Retirement Plans started by Lostvalleyguy • Mar 9, 2014.

  1. Lostvalleyguy

    LostvalleyguyActive Member

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    I encourage people to start early and contribute as much as they can before they get bogged down with a mortgage and kids etc. Rarely does anybody take this sage advice.

    People who are older (in their 40s and 50s) seemed to think they have missed the boat. Property as an investment is not easily achieved when a small condo goes for upward of a half-million dollars in this city. Many people don't own and will not have that nest egg in their retirement either. Does not being in the housing market and not being thirty really mean you are doomed to poverty in your retirement? I say no. It is never too late to start. Even if you won't be able to vacation every year, you can supplement your retirement a bit with any amount saved. Is it better to have a $400 monthly budget or a $450 one? That little bit can make a difference.

    Beginning to plan retirement later in life limits your options, but in my opinion it doesn't reduce them to zero.
     
  2. costin

    costinActive Member

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    No, it`s never too late;) My mother started at 47 years old to save some money in a special bank account, a sort of contribution account, guaranteed by state and the bank itself. It`s not very easy, the mentality of majority says that the state should give you what`s yours, but one never knows what happens today, the events over 10 or 20 years are already too far, so what`s safely kept, it`s surely yours;)
     
  3. Pat

    PatWell-Known Member

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    It is never too late to start saving, for one thing no one knows how long they will be here, so if you are here for a long time you will have something to reach back and get because you set it aside. If you are no longer here, you can pass it on to your loved ones and they will be grateful that you thought far enough in advance to make these plans.
     
  4. Denis Hard

    Denis HardWell-Known Member

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    Rather than try saving late, I would recommend trying your hand at business. If you have a job then it's quite easy to channel some of that money into a small business which you can then grow slowly until you retire. The mistake most people make is focus entirely on saving then investing their savings in something bigger later. Nothing is guaranteed in life so it's best to start early.
     
  5. crimsonghost747

    crimsonghost747Active Member

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    Starting early is obviously better but for some people starting late can work too. It really depends on the individual, his income and his expectations for his retirement. But I think it's completely fine for people in their forties, maybe even their early fifties. If you save $50 per month for 10 years, for the first 10 years of your retirement you can take that $50 out each month. And due to interest, you might just get another couple of months of extra $50 out of it.
     
  6. tcomfortbl

    tcomfortblNew Member

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    I agree, investing in your retirement now is key. I would definitely offer the same advice to my children once they start their careers!
     
  7. Quaestor

    QuaestorMember

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    I wouldn't say it's ever too late to start planning for you retirement - what else can you do? Keep working until you drop dead? This isn't even possible for most people.

    Starting earlier is a definitely a major advantage though. Here's an example:
    Let’s say you invest $100 a month from 25 onwards in a 401(k). Assuming an average 8% annual return, by age 67 you'll have over $412,000. However if you invest the same amount but start at age 35 you'll have less than $178,000.

    The combined benefits of not paying tax until the money is being taken out and the early compounding interest means that not starting a retirement plan early can literally cost you thousands of dollars.
     
  8. ExpertAdvice

    ExpertAdviceActive Member

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    Hmmm, I like that 401(k) plan, doesn't seem like you can get that whopping interest rate anywhere else in the world. But then again, it's the American dollar why so I get it. Americans seem like they love to go on vacations a lot too. But, is it worth it? lol, may be it is, cause other countries benefit from it by tourism. I can safely say that people in my country seldomly go on vacations, anyhow, I believe it is possible for one to start saving for retirement at a point where you would consider it too late. If they start in their fifties, it is definitely too late.
     
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