You start out with this wonderfully foolproof plan, and then all of a sudden you’re staring at your bank statement wondering how you fell behind.
This is something that many people face at one time or another on the path to retirement. Credit card debt starts adding up, then those investments you were counting on lose half of their value as the stock market tanks, then something else gets in the way.
It’s easy to fall behind on your retirement savings…but here’s how you’re going to start catching back up right now…
Step 1: Pay off credit card debt
I’d say credit cards are one of the biggest reasons why people fall behind. It’s a trap that can take you years off course.
Instead of allowing the interest to add up, make a concerted effort to pay off those credit cards so you can stop spending the cash meant for retirement savings on that debt.
Step 2: Downsize if necessary
A big part of getting back on track might be downsizing one or more parts of your life.
- Is your car payment too high?
- Would you be better off moving to a smaller home in order to reduce costs/payments?
- What do you spend most of your money on, and how can you reduce it?
These are some of the real questions you need to face if you’re going to clear that path leading to the retirement you want.
Step 3: Use catch-up rules
It’s time to max out your retirement accounts. Thanks to the “catch-up rules”, older Americans have the option to put in more money to their 401(k)s and IRAs. The age minimum for this is 50 in most cases.
If at all possible, use these advantages to your benefit and catch up faster!
Step 4: Use your investments
The stock market can be a money machine, where the cash you put in duplicates over and over…if you know how to use it properly.
It CAN be a risk if you or the person managing your money doesn’t have the expertise necessary to consistently make money. But if you have the right tools and resources, the stock market will be your best friend on the way to retirement.
And that’s where our special courses, like Retirement Underground and Code Breaker, come into play…
