Paul and Elaine are 58 years old. So far they have saved about $58,000 for their future. What can they do to plan for retirement? We take a look at some basic concepts to help them get on the right track with their retirement planning.
I’m 58 years old and have a little over $58,000 in my 401k. My wife, Elaine works but doesn’t have a retirement plan at work. Combined, we make about $85,000 per year, (Paul earns $60k, Elaine makes $25k). We have about 17 years left on our mortgage and the payment is $1,100 per month. Currently, I save about 5% of my pay in my 401k, because that is all my employer will match. I checked with Social Security, they estimate my benefit to be about $2,100 per month, and Elaine’s at $1,350. How can I Retire?
Watch Now: I'm 58 with $58K, How Can I Retire?
- 0:00 – Intro
- 0:19 – Disclaimer
- 0:54 – Tip 1: Make a Good Decision About Social Security
- 2:51 – Tip 2: Save More
- 5:33 – Tip 3: Eliminate Debt
- 6:54 – Tip 4: Consider Using a Roth 401(k) or Roth IRA
- 9:21 – General guidelines if you’ve started planning for retirement later in life.
- 11:11 – The importance of understanding cash flow.
- 13:00 – Outro
The Impact of Saving More
Although, Paul and Elaine don't have a lot of time to benefit from compounded returns, saving more will help. This graph demonstrates how their nest egg improves if Paul increases his savings from 5% of his pay to 15% of his pay.
It won't be easy to increase the amount they save. It will require a shift in their priorities and they will have to learn to live on less. But it can improve their retirement picture.
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Appearing in this Video...
|Todd Kimpel, CLU®
Todd is a financial advisor with more than 4 decades of experience helping people plan for retirement and manage wealth. He is located in Wheeling, West Virginia.
Andy is a financial consultant in Parkersburg West Virginia. He has been working to help people plan for retirement for 3 years.
|Neal Watson, CFP®|
Neal is a Certified Financial Planner™ Professional in Marietta, Ohio. He has over 25 years’ experience helping clients create financial plans and manage wealth.