8 thoughts on “How to Start Saving for Retirement at Any Age”
Julie @ Freedom 48
Starting early is definitely key. We got started in saving for retirement when we were still in university (in our early 20’s), and now we’re 29 and 32… and on track to retire at 48. Knowing that we’re setting ourselves up for a secure financial future is priceless. We sleep well at night =)
Eric
That’s great Julie. I didn’t even start until after college, seeing you on track to retire before 50 is great motivation!
Yakezie
Just save baby indeed! This is one thing I miss about not working.. the lack of 401K and free money and benefits. Don’t take these things for granted working folks!
Sam
Eric
But now you can make your own SEP!
TheFinanceIntegrator
Great post. Frankly, I think one should really start saving for retirement from their 20’s. That gives you a long enough time frame to save up enough for suitable retirement, and possibly even an accelerated retirement. I started saving for retirement as soon as I started working. I’m hoping to achieve financial independence at 40 (in another 5 years) through passive dividend income
Eric
That is a great goal. I first put money into a retirement account when I was 23 and have increased my contribution every year. What percent of your income do you contribute to be able to retire at 40?
RA
Found this blog recently, first time poster. Nice blog and great posts!
You mentioned you utilize ‘other investment and savings’ in addition to 401k and IRAs. Are these taxable investments? What kind of investments/savings portfolio do you recommend without having a huge tax burden?
I currently already max out 401k and IRA contribution and I am looking for financially sound opportunity to put away more.
Thanks!
Eric Rosenberg
Hi RA, welcome to Personal Profitability!
I actually just shared the contents of my investment accounts for the first time recently (this week for retirement accounts). I have both a Roth IRA and Rollover IRA at Schwab plus a 401(k) at work. I also have a regular old taxable investment account.
If you are already doing the max on your 401(k) and IRA, the next logical step is to go to a taxable account for other investments. Sure the taxes are no fun, but you only pay them when you are making money, and they are lower on long-term gains (investments over 1 year old). I would invest some in a taxable account, particularly if you already max your tax advantaged accounts. Otherwise all of your assets are tied up until you hit retirement age.
If you invest in a taxable account, you can use that to retire early if you get ahead far enough and save the tax advantaged funds until you hit the government approved retirement age for withdrawal.
Comments are closed.
We use cookies for analytics and personalized ads. You can opt out anytime.
Privacy Policy
Starting early is definitely key. We got started in saving for retirement when we were still in university (in our early 20’s), and now we’re 29 and 32… and on track to retire at 48. Knowing that we’re setting ourselves up for a secure financial future is priceless. We sleep well at night =)
That’s great Julie. I didn’t even start until after college, seeing you on track to retire before 50 is great motivation!
Just save baby indeed! This is one thing I miss about not working.. the lack of 401K and free money and benefits. Don’t take these things for granted working folks!
Sam
But now you can make your own SEP!
Great post. Frankly, I think one should really start saving for retirement from their 20’s. That gives you a long enough time frame to save up enough for suitable retirement, and possibly even an accelerated retirement. I started saving for retirement as soon as I started working. I’m hoping to achieve financial independence at 40 (in another 5 years) through passive dividend income
That is a great goal. I first put money into a retirement account when I was 23 and have increased my contribution every year. What percent of your income do you contribute to be able to retire at 40?
Found this blog recently, first time poster. Nice blog and great posts!
You mentioned you utilize ‘other investment and savings’ in addition to 401k and IRAs. Are these taxable investments? What kind of investments/savings portfolio do you recommend without having a huge tax burden?
I currently already max out 401k and IRA contribution and I am looking for financially sound opportunity to put away more.
Thanks!
Hi RA, welcome to Personal Profitability!
I actually just shared the contents of my investment accounts for the first time recently (this week for retirement accounts). I have both a Roth IRA and Rollover IRA at Schwab plus a 401(k) at work. I also have a regular old taxable investment account.
If you are already doing the max on your 401(k) and IRA, the next logical step is to go to a taxable account for other investments. Sure the taxes are no fun, but you only pay them when you are making money, and they are lower on long-term gains (investments over 1 year old). I would invest some in a taxable account, particularly if you already max your tax advantaged accounts. Otherwise all of your assets are tied up until you hit retirement age.
If you invest in a taxable account, you can use that to retire early if you get ahead far enough and save the tax advantaged funds until you hit the government approved retirement age for withdrawal.