Can I Retire At 60 With 500K
Written by Brian B

Can I Retire At 60 With 500K

If you are currently wondering aloud “can I retire at 60 with 500k,” you’ll be relieved to learn the answer is yes! There is no easy way to make this a reality, though. You will have to stay disciplined with your finances and save as much as possible. Here is a guide for retiring with $500,000 in the bank.

How Can I Retire With 500K?

The common rule of thumb is that you’ll need to save $1 to $2 million in order to retire. While that is a figure most workers should strive for, sometimes it is simply unrealistic. In some cases, 500K saved will be enough to retire on. With a smart budget and the possibility of two individuals in your home receiving social security or pension income, it is certainly possible to retire with a smaller amount saved.

Here are three steps to follow when saving for retirement at 60:

  • Live on a budget.
  • It’s all about location.
  • Save money early.

Live On A Budget

Enjoying your current lifestyle while also planning for the future is a key towards building a successful retirement. Basic living expenses, such as housing, utilities, healthcare and transportation should all be on a tight budget. If you are struggling to come up with a budget you deem attainable, then the experts suggest going back and reviewing your bills from the past year or month. What could you cut back on, financially, and how can you make those sacrifices? Do not wait until your 40s or 50s to make these evaluations if retirement at 60 is your goal.

It’s All About Location

This may be the hardest part about saving for an early retirement. Consider the idea of moving to an area with lower housing prices, if possible. Of course, this is certainly a tough ask if you are raising kids, and happy with the school district that they are enrolled in. A move can also apply to when you actually do retire. With 500K saved, you might not be able to afford living in the most luxurious areas in the country. Never live above your means, especially during retirement.

Save Money Early

Obviously, the more money you save throughout your life, the more equipped you are for a long and healthy retirement plan. Saving as much money as possible while you are young and middle aged is an essential part of the retirement process. Luckily, there are many ways to save money these days. Opening a traditional or Roth IRA are great ways to save. Constantly take advantage of unexpected savings, like a work bonus. Toss any extra cash into an IRA or even towards your 401(K). If your employer offers a retirement plan, check to see if they will match any amount fully.

When Might Be The Best Time To Start Saving For Retirement

When Is The Best Time To Start Saving For Retirement?

Ideally, experts suggest that everyone starts saving for retirement as soon as they possibly can. Easier said than done, right? Well, experts offer many options for young people to save money now. Putting away at least 10% of your monthly income is a great way to start saving. Simple math here: put away 10% of your $5,000 earned per month equals a savings of $500 per month. That means a total of $6,000 will be saved for the year. Not a bad start at all. Saving 10% per month, starting in your 20s will help cover for any dips in the stock market.

According to a recent survey conducted by Charles Schwab, Americans believe they should have $1.7 million saved by age 65. In order to hit that goal, you would need to save nearly $500 per month, starting at age 25. In some cases, this amount of savings is not reasonable at all. Some 25-year-olds may be struggling in the job market, raising kids, paying off students, or all of the above. If you begin saving for retirement later on, the amount per month needed to be put away will only increase.

Average Ages When Americans Begin Saving

Here is a look at the typical age groups when Americans begin saving for retirement.

  • Ages 20-29: 39%
  • Ages 30-39: 25%
  • Ages 40-49: 15%
  • Ages 50-59: 6%

All data is from a report published by Morning Consult.

Independent Living At Desert Winds Retirement In Peoria, Arizona 

If you are searching for an independent living facility in Peoria, ArizonaDesert Winds Retirement Community is the facility for you! Travel over to our independent living page to see pictures find out more about our facility, amenities, floor plans and more.

More Articles About Senior Living

How To Save For Retirement Without A 401k
Written by Brian B

How To Save For Retirement Without A 401k

Some people beginning to save for retirement may fear they won’t have enough money accumulated without a 401k. This is simply untrue. There are many alternative ways to save money throughout your career. This post will explore retirement savings options for those without a 401k.

Retirement Savings Options

Here are a few ways to save money in the absence of a 401k plan:

  • Open an IRA
  • Save tax refunds
  • Contribute to a CD
  • Solo 401k
  • Health savings account (HSA)

Open An IRA

Opening an IRA is the most popular alternative for individuals without a 401k. Many turn to opening an IRA because there are many different IRAs one can invest in. Both a Roth IRA and a traditional IRA are great investment options. The only stipulation is that one must be earning an income to open an IRA. But, this does include individuals who may be unemployed, yet married to someone who is earning an income. Freelancers and self-employed individuals often choose to open an IRA.

Save Tax Refunds

This is the simplest, but far from easiest option for individuals to save money towards retirement. All you have to do is put your tax refunds directly into savings as soon as you receive it. This may seem like a difficult option, especially for those who depend on tax returns. In the end, though, saving tax returns will be worth it. IRS Form 8888 allows taxpayers to directly deposit refunds into two or more investment or savings acoounts.

Contribute To A CD

A CD (certificate of deposit) offers another great option for those looking for savings opportunities in the absence of a 401k. One of the biggest benefits of a CD is that money can be withdrawn at seemingly any time for any reason. This is an ideal investment option for people who may encounter some large upcoming bills, such as hospital stays and so on. The federal governement insures CDs to never lose value, making this one of the safest invest options possible.

Solo 401k

Also known as self-employed 401k, a solo 401k plan is ideal for those not expected to make a large yearly income. This plan gives you the option to contribute twice, once as the employer and as the employee. As long as the total does not exceed $19,500, individuals are allowed to contribute their entire yearly earnings. That, of course, differs when contributing as the employer. Here, you can contribute up to 25% of your earnings. Spouses of those participating in this plan are eligible, as well.

Health Savings Account (HSA)

A health savings account can be opened even if you have already elected to start an IRA, solo 401k or a CD. The benefits of a health savings account include tax-free withdrawals and growth potential. Money can be pulled from this account with no penalties after the age of 65.

Read more about saving without a 401k right here.

Independent Living At Desert Winds Retirement In Peoria, Arizona 

If you are searching for an independent living facility in Peoria, ArizonaDesert Winds Retirement Community is the facility for you! Travel over to our independent living page to see pictures find out more about our facility, amenities, floor plans and more.

More Articles About Retirement