West is the start of providing your retirement in the twenties of the last century and the early thirties of the last century, but if you have just started in the 1950s, it will not be good to cry over pouring milk. A 51 -year -old child No retirement And it turned into Redait (NYSE:red) For advice.
“I have $ 36,000 in 401 (K),” said the 51 -year -old. “I think I will have $ 250,000 when I retire.”
Many Redditors shared their advice in the comments.
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The 51 -year -old has a history of contributing to 401 (K) and having to withdraw money early when financial affairs become tight. For this reason, one of the commentators suggested creating an emergency box that could cover the living expenses from six to 12 months.
“You need an emergency box so that you can stop using your retirement savings when you hit the life crisis. Reducing expenses strongly,” the commentator said.
The next advice will make it easy to build an emergency box. Not only does the expenses be given the money you put in the emergency box, but your monthly expenses also decrease. Since the emergency boxes depend on your monthly expenses, reducing costs will reduce the amount you actually need in your emergency box to cover six months of expenses.
As a reward, the 51 -year -old must store money in the high -return provision account. In this way, the money continues to grow at a high rate.
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The 51 -year -old expects retirement for 16 years, but this may not be so with their current money. A nest egg of $ 250,000 is not enough. The withdrawal base of 4 % is $ 10,000 per year, which is not enough to live in.
The only blessings of savings is that the 51 -year -old must have paid his home by that time, and social security checks can help slightly. However, the most useful option may be to extend the retirement age to 70. In this way, the 51 -year -old will have an additional few years to contribute to his wallet without heavily on a real estate loan.
The wallet can grow dramatically once the monthly mortgage payments are placed in your mediation account. It represents a promising opportunity, and by working for a few years, Nest EGG does not have to extend at the same amount to ensure that the 51 -year -old money is not running out.
https://media.zenfs.com/en/Benzinga/282ac8fdc5fed5e53cab19332e0ac1fb
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