3 ways to retire without a large nest egg

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It’s no secret: We Americans can be distracted when it comes to saving money for retirement. The excuses for the lack of savings can range from hard economic times and poor opportunities to good investments that just went south.  For many of us, our retirement nest egg was high jacked by simply just too much crap being marketed to us every day that we feel we want/need to buy!  Whatever the reason, it can be hard to think of saving for the future; after all it’s a long way off.

Well, if you haven’t been on track towards building a large financial nest egg, then let’s give these ideas a glance!

Keep in mind you are not alone since an unsurprising portion of Americans have nothing saved for their retirement years. According to a recent survey by Bankrate

  • 33% of people ages 30- to 49-year-olds have not saved any money for retirement!
  • 26% of people ages 50- to 64-year-old have not saved any money for retirement!
  • And, moreover, 14% of people 65 and older have not saved any money for retirement!

Saving for the future is just not on the action plan for many of us.  It’s obvious we American’s generally don’t like to save money for retirement, but we do like to spend.  So what’s the next step?

Financial planners say the magic retirement number is different for everyone depending on their personal circumstance.  However, the million dollar savings is a number that is often thrown around as the amount you want to have before you retire.  So let's take a look at three alternatives to accumulating a million-dollar nest egg.

1.  Spend down debt

If you like to spend and have trouble saving for retirement, then start here.  Make spending on eliminating debt a big priority.  Spending is fun! Spending and having something to show for it is even more fun!  Spending to pay off your debts is a very good way to spend money and have the satisfaction you are getting when you spend money - and get something fun back – your freedom.


Think about it, having fewer expenses in retirement reduces the need for much income.  Instead of focusing on small actions such as skipping daily lattes or canceling extra premium channels to only put that money in savings for a short time before you spend it on your next bar bill or the mall, instead make dramatic changes by sinking money into extra debt reducing installments.  Just keep making frequent extra payments of any size to your debt.  This may be new for you so it could take a little discipline at first, just butch-up!  After a while, you will feel like you're playing a game of me against them (the Creditors) as you get excited about the progress you are making in reducing your bills.  Remember to pay your highest rate debt first but go after it all eventually (meaning ASAP).  And constantly remind yourself and visual that a quick pay down equals retiring debt free, and maybe even ahead of schedule!


2.  Down size

Heard this before?  Would you like to "Super-size" your...?  And we should generally reply back "No thank you, 'normal is great'".  Whether you’re the government, a business or a private citizen - from time to time we all have to downsize.  Many times it truly can be "right-sizing" because this consumer environment we live in promotes excess.  Do you really need that oversized house?  If your house has a big mortgage consider getting rid of the big house and buying something smaller with the proceeds of the sale of your bigger house.

Perhaps the time is not right to sell your house due to market conditions.  How about taking on a roommate or two?  Voila, extra monthly income.  And of course you can sink that extra income right into wiping out some targeted debt we spoke of earlier.  Perhaps you can accelerate the pay down of your current mortgage now - if you already wiped out your expensive credit card deb of course?  Make making more money and eliminating debts fun!  Get excited to be making yourself more and more financially free each month.  Plus, the more you reduce your debt, the better you will sleep.

3.  Pack your suitcase

Just as your big mortgaged house could sabotage your retirement, so can living in America.  Now is not the time to get all EXTRA patriotic.  You’re still an American and can still love your country.  But you can also travel a bit and live in countries where frankly it’s less expensive to live.  And you will probably find it more enjoyable too because the stress of trying to make a living is not there.  There are even great places to live where “keeping up with the Jones’” is unheard of.

Live and Invest Overseas recently released its 2014 Retire Overseas Index, naming the best countries for retirement - Portugal ranked as the top retirement destination, followed by Ecuador and Malaysia for your basic criterion of: climate, safety statistics, economics, taxes…  Go online and do some research and explore some of these options.  They may start to seem exciting.

And if you’re dead set on leaving America, then perhaps you could think about leaving your more expensive state for a less expensive state.  In business we call this arbitrage.  Basically it means buy low, sell high.  I remembered witnessing many Californians moving to Texas and other states to buy a house cash with the market appreciation we saw here in So. California. 

4.  Delay retirement

I know this sounds counter intuitive towards retirement planning.  But think about it, you don’t have the money yet – then you don’t have the money yet!  Ok that was blunt, true but blunt.  There’s more to it than that though, when you realize this point #4 of “delay retirement”!  If you don’t have the money and are not making efforts/progress on the first three slides to help you retire, then the option you have left by default is to delay retirement.  So I hope this page causes you to have a reality check and focus more on points 1, 2 & 3, which are about reducing your debts!

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3 ways to retire without a large nest egg

Sophie Green's Website

Article Source: http://moneysolution.com/retirement/3-ways-retire-without-large-nest-egg-443

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