Sunday, September 14, 2014

4 Tips to retire at the age of 40 and more

They are men or the age of your 40?

Are you baffled by the amount of money you need to retire?

You know how much money you need to retire, but overwhelmed by the idea of saving so much money?

If you answered "Yes" to any of these questions, check out these four tips retirement at the age of 40 and older people. The first trick will help you determine how much money you need for retirement, while the rest to find the tips that will help you to earn way more money.

# 1: How much money do I need to retire?

Blades much money in retirement as you can. If you start saving for retirement in their twenties, says the rule is that you only get to save 10 to 12 percent of the net wage. If you are just starting out in their forties, the general rule is that you need to increase their savings rate from 15 to 20 percent.

Does your intimidating? Then try this: instead should save on the percentage of net pay, decide how much money you spend per year in retirement. Multiplied to determine with 25, how much you need to save.

At $ 40,000 per year to live in retirement, for example, millions of $ 40,000 x 25 = $ 1 will have in your retirement portfolio. (Read this article for a detailed explanation of how we calculate it.)

$ 1 million may be a lot, but remember: you do not need to $ 1 million in his 9-5 job earn only GROW 1 million for their investments.

The most important factor to achieve this is a long-term horizon. The longer your money invested in a pension fund, the more it will grow. In fact, with a strategy of aggressive saving, you can create a portfolio of $ 1 million to provide only 17 to 20 years. (Read this article to learn how to be a millionaire.)

Why? In short, the more money you invest, the more you benefit from compound interest take. Passes after time, is compound interest, you can double or triple your money. Read this article for a more detailed explanation of how compound interest works.

# 2: Look for sources of current income

If your current job does not pay enough to save you $ 1500 - $ 2000 per month or more, you may want to consider finding ways to make more money on the side.

Small amounts make a big impact. If you win an additional $ 100 per week - maybe cut through the grass, child care, counseling, teaching or self-employment - and you can also cut an additional $ 100 per week from their buying habits, you earn an additional $ 10,400 per year.

(You can possibilities, find tailored for your budget to $ 100 per week? Use these worksheets budget to see where all your money is going.)

# 3: Find the source of future income

In addition to winning more, spend less and build your portfolio million, you can also use other sources of retirement income.

I know that a pensioner whose house is fully depreciated; is free from mortgage. He rented the house to tenants. Use part of the rental income to pay their rent to a better place, and saw the rest of the rental income to supplement his small pension and social security.

His case is extreme, since most people are not willing to leave their homes. However, could a modified version, rented part of your home like the basement or cottage in the law.

This is just one example of the many ways you can earn more money while you are retired. You can also give lessons, access, manage a daycare, or work as a nanny.

# 4: Delay Retirement

If you are in your 40s, you still have enough to build a portfolio of $ 1 million times. You are at least 20 years, run until the date of resignation.

But what if you are in your 50s or 60s and you realize that you drastically have enough funds your retirement portfolio? Next work.

Unless your boss or his forces retiring health, stay as long as possible in the workforce. Each additional year in the labor market is more money to save for retirement, and investments have more time to develop.

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