Life often delivers the unexpected, as so many of us have learned in recent months. You may have started out with the best of intentions regarding your retirement savings plan–monthly contributions, personal savings, investing in the right house. And then maybe you were forced to put those plans aside, or your professional life hit a snag. It’s easy to fall behind on retirement planning when the goal is just keeping your head above water and making your mortgage payment. It can in fact happen to the best of us.
Should you be in this position, there is some good news: it’s never too late to start retirement savings. With the right guidance and a bit of work, your retirement planning can start or restart right now. Regardless of where you are in life, it’s not too late.
Alternative Retirement Plans
First off, you may need to adjust your mindset and develop a more realistic plan for your retirement. A beach condo in Florida or ex-pat life abroad may not be in the cards if you’re coming to retirement savings later in life. You may need to adjust to the idea of staying in your current home and enjoying your golden years from there. This need not be a bad thing; you’ll be surrounded by the familiar and in a place you presumably enjoy. You may need to allow for more modest spending in retirement as well–fewer cruises and more staycations. Again, none of this is bad: it’s just how life works out sometimes.
With that in mind, however, there are some tools that can make retirement planning easier. The IRS has provisions in place to allow for catch-up contributions to retirement funds for those 50 and older or for workers with fewer than 15 years in their current job. This applies to some Simple IRAs and various work sponsored accounts, allowing contributions above the regular maximum, up to an additional $6,500 a year. This may not sound impressive when compared to your overall financial needs, but via the power of compound interest in a properly managed fund, it can add it more quickly than you might think. Again, you may wish to seek professional guidance to ensure you’re both following the rules and making the smartest financial moves for your retirement planning.
Another option for homeowners coming to retirement planning a bit later in life is a reverse mortgage. As the name suggests, a reverse mortgage is a plan which allows you to convert some of the equity you’ve built up in your home into cash. That money in turn can be used as part of your retirement planning via investment in your retirement account, a portfolio, or a mutual fund. Reverse mortgages can be quite useful, giving you an influx of cash which, spent wisely, can allow for a secure retirement. However, they need to be handled carefully and as with all things regarding financial planning, you’ll likely want to seek expert advice from someone who knows your situation and goals and can thus best help you plan.
Finding the Help You Need
Just as it’s never too late to start saving, it’s never too late to engage the services of a financial advisor. The right advisor, one who specializes in retirement and in particular late retirement planning, can help you navigate the myriad choices available and find your way to the right retirement for you. You’ve worked hard to get where you are, and having someone in your corner giving you the right guidance and working hard on your behalf can give you the edge you need. At OmniStar Financial we strive to help our clients live their best lives by illuminating the blind spots around retirement, investment, and other financial needs. Get in touch today and let us get to work ensuring that your retirement is everything it can be.