Dave Ramsey's Investing Minute Newsletter June 2009

Dave Ramsey's Investing Minute Newsletter June 2009: "June 18, 2009
Retirement Tips For Late Starters

Are you are one of the millions of people who realized you started saving for retirement about 20 years too late?


If so, don't panic and start freaking out. Here are three tips to help you.

Delay retirement for two more years.
The more you work, the more you save. According to the Center for Retirement Research at Boston College, most people who work two extra years after qualifying for retirement can lower the amount of savings they need by about 25%. Plus, the extra income will be an added bonus!

Get serious about investing.
Don't give up. It's time to put all you can towards your retirement. Even if you're 40 or 50 and don't have a retirement account, it's never too late to start. If you are 40 and save just $2,000 a year in a 12% mutual fund, you will have nearly $334,000 by age 65—or more than $425,000 if you wait until 67 to retire! While you won't have the most luxurious retirement, you can draw a decent yearly income—about $48,000—from the interest by leaving that money alone.

Stay out of debt!
Think of all the extra money you could be putting toward retirement if you didn't have those car payments, student loans, and ridiculous credit cards! The average car payment is $464 a month. You could be using that $464 to build wealth for the future, rather than putting it toward a vehicle that declines in worth every day. If you're not 'gazelle intense' about paying off your debt, now is the time to get started."