Ben Carlson: Overcoming A Late Start To Saving For Retirement

Ted

FYI: It would be nice if everyone started saving money early to take advantage of time and compound interest but I can see how people could fall behind when you consider the typical financial lifecycle: paying off student loans, saving up for a down payment on a house, having children, saving for college and all of the expenses that come along with raising a family.
Regards,
Ted
http://awealthofcommonsense.com/2016/12/overcoming-a-late-start-to-saving-for-retirement/

MJG

Hi Guys,

This is a tough problem that is common to most folks. Normal demands force us to start savings for retirement far too late. This article does a nice job at identifying the issues and some possible approaches to alleviate the situation.

I was somewhat surprised that Monte Carlo tools were not mentioned as a way to put some numbers on the problem for each of our very specific circumstances. Numbers help in the planning for a savings program. Of course, execution is yet an entirely more challenging matter.

Here are a pair of Links that I have provided earlier that give access to good Monte Carlo simulation tools:

https://www.portfoliovisualizer.com/monte-carlo-simulation

http://www.moneychimp.com/articles/volatility/retirement.htm

If nothing else, I am consistent. Please give them a look/see. Don't be intimidated by the term Monte Carlo. These tools are easy to use. They just might make any retirement decisions a little more comfortable after running a number of what-if scenarios. Enjoy and prosper!

Best Wishes.

Old_Joe

A good article- well worth reading for those still working. Giving credit where due, just because MJG has tirelessly been parroting the same advice regarding Monte Carlo simulations for ten years (to the point of ennui) doesn't mean that it isn't good advice.

Nick_de_Peyster

Reducing living expenses can make all the difference, and this book is the best at effecting the mental changes that make it possible.

Nick de Peyster