If you’re in your 50s and feel “too late” to start saving, think again. I recently watched a brilliant episode of the BiggerPockets Money Podcast that proved you can retire in 10–15 years — even if you’re starting from zero at age 50.
The hosts used a case study called “Barb” — a 50-year-old woman with no assets and no savings. Her goal? To retire by 60. The plan they laid out is tough but realistic, and it works whether you’re in the US or the UK.
Here are a few highlights:
1. Save Your First $25,000 (US) / £20,000 (UK)
This is the hardest but most important milestone. It creates a financial buffer, builds confidence, and allows you to take smarter risks with career or housing.
2. Focus on the Big Three Expenses
-
Housing → In the US, consider “house hacking” (renting rooms or buying a duplex). In the UK, the rent-a-room scheme lets you earn up to £7,500/year tax-free from a lodger.
-
Transport → Downgrade cars or use public transport where possible.
-
Food → Cut takeaways, meal plan, and buy in bulk.
3. Invest With the Right Tools
-
US → Maximise 401k match, use Roth IRA for tax-free retirement withdrawals, and remember Social Security.
-
UK → Contribute to your workplace pension, use a Stocks & Shares ISA (£20k/year limit), or a Lifetime ISA (25% government bonus if eligible). Plus, the State Pension adds a safety net.
💡 This is just a quick taste. I’ve written a full breakdown for both US and UK readers, with step-by-step actions inspired by the podcast episode.
📺 You’ll also find the video linked at the end of my article so you can watch the whole discussion.
0 comments:
Post a Comment