Three Simple Tips if You Don’t Have 40 Years to Invest

Sure, time is big help when you’re investing for big financial goals, but it isn’t the only answer. You can still reach your goals with less time to prepare: it just takes a little more discipline. Here how’s you can get where you want to go in less time:

Save more money and use it to invest. What if you saved $1 each day and invested it in your retirement account? Earning a 7% return on an annual contribution of $365 gets you to $5,043 after 10 years, $14,963 after 20 years, and $34,478 after 30 years. So, if you invest the $4 you spend on a latte for your morning commute, you could have $137,913 more in your nest egg 30 years from now. The government allows people 55 and older contribute more to IRAs, Roth IRAs, and other retirement investment accounts to help them catch up.

Keep money in your investment accounts longer. Postponing your retirement helps in a lot of ways. You contribute for several more years; your investments have more time to grow, and your Social Security benefits increase. If you use a Roth IRA, you don’t have to start withdrawing when you turn age 70 1/2).

Reset your objectives. If your retirement plan still doesn’t work, you can notch down your annual living expenses in retirement.