Sometimes we talk up the power of saving early and compoundingso much we unintentionally discourage those nearing retirement. A looming deadlinefor anything creates anxiety. When that deadline marks the end ofyour career, then it can get downright scary. Add to the mix thiscrazy thing called “finance” (aka “math,” which by some accountsconnotes even worse feelings), and you have all you need for anexplosive concoction of unease, unknown, and uncertainty.
This can lead to poor decisions, awful mistakes, and bad thingsin general. Those lucky few who've decided to invest in themselves(and their future) benefit from having a financial coach who knowsthe tricks to better preparing those in their 50s for retirement.It all starts by knowing how to avoid the many traps that canensnare the inexperienced pre-retiree.
One of the most common traps is the false belief that it's “toolate” to do anything about it. The emphasis on early saving makesit sound like preparing for retirement isbest suited for young people, not those nearing retirement. Infact, for those ages 50 and above, the government has provided aspecial bonus to help your retirement saving efforts. Depending onyour retirement savings vehicle, you can stash between $1,000 (foran IRA) to $6,000 (for a 401k) more per year beginning at age50.
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