Asked by Jo Ann  |  Submitted November 09, 2015

I am 55 years old and I have no retirement account. Is it too late for me to put money back to have a little nest egg and be able to up my income?

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  Answers  |  2

November 09, 2015

Jo Ann, it is never too late! If you are employed and have a 401(k) or 403(b) plan with a matching contribution you should start there! If not, you can save into an IRA or a ROTH IRA each year if you have earnings.. If you have a ER plan you can do that AND an IRA depending on your income level. I suggest you find a fee-only investment adviser/CERTIFIED FINANCIAL PLANNER in your area to assist you in making these decisions. Best wishes!

Brian | 11.10.15 @ 22:18

Wow Jo Ann, what a candid response to promote the CFP... -Now here’s what I got from the question: Is it to late to put money into a traditional retirement account TO HAVE A NEST EGG THAT WILL BE SIZEABLE TO UP MY INCOME..? The main question that was missed was when do you want to retire and how much in after tax dollars do you need; age 75? If you max out the Qualified Plan ($24,000/yr) and the IRA ($6500/yr) and earn a 6% return that’s how long it will take to achieve a nest egg capable of an $80,000 net income. If you want to retire by age 65 you better be able to save about 98% of your gross income per year at 6% if you want to “UP YOUR INCOME” by then. -What I’m getting to is the ER Plan AND IRA alone won’t cut it. Where are they going stash money that guarantees at least 6%? They need to get a Retirement Plan that identifies all their resources. The plan may include reducing cash flow, increasing income, and perhaps retirement work that they enjoy doing.

$commenter.renderDisplayableName() | 10.01.20 @ 21:52


November 10, 2015

A better QUESTION would have been “How Large of a Next egg do I need to generate $X.xx in retirement income that would last for up to 30yrs...

$commenter.renderDisplayableName() | 10.01.20 @ 21:52