Sally Toro didn't get serious about saving for retirement till late in the game. Now she is on track to retire at 60.In your 50s, and even older, you might find yourself thinking of retirement with a mixture of excitement and dread.Even if it's a mix of work and leisure, most of us expect a little loosening up on the pressures of working. And starting in your 40s and 50s, it's natural to start planning and wondering what retirement will look like.
Through her 20s and 30s, Toro, who lives in Pompano Beach, Florida, saved nothing. When Toro was 39, Bea Martin, a co-worker at their financial company, asked if she was using the company's 401 plan. No, Toro told Martin. Between supporting her two daughters as a single mother and a salary of about $42,000, she simply could not afford to give up 1 cent.
Toro started putting 2% of each paycheck aside. "I was terrified I wouldn't have $20 more on that paycheck," she said. But she remembered what Martin said: that in a year's time, she would build up a cash reserve.Barbara DelaneyIn a year, she accumulated about $4,000 and felt rich. "But I didn't have the guts to continue increasing," she said. Only when she moved on to another company did she begin slowly upping the percentage.
A year ago, she began working with a financial advisor. Between her 401 and two individual retirement accounts, she has close to $300,000 and hopes to retire at 62.
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Source: Reuters - 🏆 2. / 97 Read more »