Objects in the Rear View Mirror are much farther than they appear

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As much as I try to deny it, I’ve reached “that point” in my life where my age is  closer to Retirement Age than the legal drinking age.  Way back then, my worries were less about saving than they were about enjoying life.  Of course, much of that perspective has changed over time for many people.  If you’ve reached the big 5-0 and still think more about enjoying life than saving, you have either done a great job at saving, or you really need to wake up!

This article is for those who may have to wake up.. or have recently awoken and are looking for a direction.

One of the benefits over reaching 50, besides the AARP cards that magically appear, is the ability to play ‘catch-up’ with your retirement savings. If you are at least age 50 by the end of the year, you have an opportunity to play catch-up by funding your retirement nest egg if you contribute to an IRA or contribute to 401(k), 403(b) and-or a 457 plan.  The 2012 limitations are mentioned in this prior post.

If you are a Stay-at-home person and have no income from outside employment, you may use your spouse’s income to fund your own Traditional IRA or Roth IRA (or a Spousal IRA). This allows you to add to your own nest egg separate from your income earning spouse.

As for us, my wife has started working full time this year with the local school system.  With her income, we’ve put close to 50% into her 403(b) plan and continue to fully fund my 401k plan.   We woke up late and are taking advantage of  any saving opportunity we can to help us get to the point where we’ll be able to enjoy life once we ‘retire’.  Whatever ‘retire’ means in 15 to 20 years..

The next few posts will be from some younger folks, who are at the beginning of their careers.  Many of them are in the process of becoming debt free, others have recently become debt free.  If you know of anyone who might be interested in sharing their experiences, please send them my email at igotouttadebt <at> gmail <dot> com.




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