Best Ways to Catch Up on Retirement: Save More vs. Aggressive Investing
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- เผยแพร่เมื่อ 9 ก.ค. 2024
- What’s the best way to catch up if you’re behind on retirement savings? The idea of investing aggressively to pursue faster growth is appealing to some people. But how does that work out, and what are some of the risks?
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The answer may depend on how much time you have before retirement. If retirement is within 5 or 10 years, the most effective strategy might be to add more to your savings every year. That’s easier said than done, as you might already be saving as much as you can afford. But if it’s possible to save more, doing so should help you get caught up.
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With several decades before retirement, it can work out well to pursue higher returns in the markets (of course, there’s no guarantee that you will achieve those returns-you can and will lose money investing, at least temporarily). That’s because compounding can potentially work in your favor, assuming all goes well.
There are other strategies to shore up your finances if there’s a shortfall: spending less, downsizing, taking advantage of catch-up contributions, etc. Some of those strategies are available to you today, and others might be feasible in future years.
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CHAPTERS:
00:00 Intro
00:28 The Question: How to Catch Up
01:46 Baseline Assumptions
02:46 Double Your Savings Amount
03:29 Double Your Investment Return?
08:24 Adding Risk to Existing Portfolio
14:17 Other Strategies
You can and will lose money investing-at least temporarily. Whether or not you will be able to recover from losses is uncertain. Past performance does not guarantee future results. We look to the past for examples, but only time will tell how things unfold. The mention/display of any financial firm is not a recommendation for or against using their products. Other firms are not affiliated with Approach Financial, Inc. Any rates of return shown are for educational and illustrative purposes only, and do not indicate that the firm can deliver such results for clients. Investor returns vary based on risk levels, economic and market activity, investment selection, fees and expenses, timing, and other factors.
IMPORTANT:
It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.
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Note: I do not discuss offerings, pricing, etc. in these comments. Please proceed to the website, where you can find a substantial amount of detail.
this is the video for me. I have a 90% on stocks, 10 years from retirement
Thanks for your content.
Thanks for the excellent content, Justin!
Thank you, David, much appreciated!
@@ApproachFinancial My pleasure, Justin!
I'm fortunate. I used to travel when I was younger, and because I was raised to make sacrifices, I don't have ostentatious tastes. I believe that by engaging in my inexpensive activities and living frugally, I'll have a very good retirement.
You are right .
I retired 7 1/2 years ago. My wife retired two years later also at age 62. To date we have not touched a dime of our retirement savings. We are having zero issues living on nothing more than our Social Security.
Great informational video @ApproachFinancial with investments based on real world scenarios. Can you share your spreadsheet or the link that shows the benchmark based on the bear market periods? Thank you.
Thank you! The calculator (but not the spreadsheet, other than a screenshot) is embedded in this page: www.approachfp.com/best-way-to-catch-up-on-retirement-savings/
I'm not aware of a public link to the piece showing bear markets. I don't really remember where I got that, but I suspect it's part of Vanguard's "Advisor's Alpha" content, so I think you'd need to be a financial advisor to access it. A Vanguard representative might know where to find it online.