Thinking about retiring shouldn’t be limited to those who are older or are feeling as though they’ll be winding up their working experience in the next decade or so, but the reality is if you’re 50 or older, you can’t help but wonder if you’ve done enough to ensure you can call it quits and be financially stable in the process.
The reality for the 50 plus crowd isn’t so much centered on panic setting in but rather having to increase the effort to save since you don’t have as much time as you did when you were, for instance, in your 30s.
As much as you believe that the time to save was 20 years prior, when you reach the age of 50 or 55 is when you really have to take stock of your savings plan, your budget and determine what can be done in order to start saving that much more to top off whatever you have already saved for retirement.
Most look to their mortgage specifically as a means to see what is available as far as money is concerned. There is a two fold approach to it: home equity loans or paying off the mortgage altogether.
Getting rid of your mortgage payment is going to eliminate a huge chunk of what is taking away most of your money now in the form of one less, massive check you have to write every month. Doing that might seem like it’s going to eat away at your retirement but not if you consider you’ll be mortgage free for the better part of the next 10 years. Saving on a $1500 per month mortgage over 10 years is going to net you nearly $200,000 in your pocket. The trick is not to take that extra income and use it for something else frivolous, like that RV you’ve had your eyes on for retirement.
Instead, think about the prospect of not only saving on paying a mortgage but also the idea downsizing might help, too. A smaller townhouse, less upkeep and utilities, is always an answer to having a smooth transition into retirement.
If paying off your mortgage isn’t possible, you might want to consider a reliance or find some equity in the home itself to pay off other high interest debts while still finding a manageable payment moving forward, one that isn’t going to hurt against the fact that you won’t have any income when you retire (other than social security or pensions, if applicable).
Retiring isn’t always a welcoming thought since some aren’t sure when to actually pull the proverbial trigger and say so long to the workforce. Knowing that you’re ready means you’ve made the right financial decisions and aren’t worried one bit about walking away for good, with no intentions on coming back.
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