There are multiple actions you can take to better prepare yourself financially for retirement.
Here are six tips that may help you make the most of your final working years.

1. Catch up. If you have access to a 401 (k) or other workplace-sponsored plan at work, make the
$5.500 catch-up contribution that is available to participants aged 50 and older. Note that you are
first required to contribute the annual employee maximum, $17,500 for 2013. before making the
catch-up contribution.

2. Fund an IRA. Investors aged 50 and older can contribute $6,500 annually (the $5,500 annual
contribution plus an additional catch-up contribution of $1 ,000). An investor in his or her 50s who
contributes the maximum amounts to both a 401(k) and an IRA could accelerate retirement
savings by more than $25,000 a year.

 

3. Consider dividends. If you do not have access to a workplace-sponsored retirement plan , or you
already contribute the maximum to your qualified retirement accounts, consider stocks that offer
dividend reinvestment.’ Reinvesting your dividends can help to grow your account balance over
time.

4. The cost of your daily latte. Consider how you can trim expenses while continuing to enjoy life. Some
suggestions for quick savings: eliminate or reduce premium cable channels that you do not
watch, memberships that you do not use regularly, and frequent splurges on dining out or coffee
runs.Buying a Starbucks “tall” latte at $2.75 per day costs you about $1,000 a year. If you instead invested this money over 15 years at 6%, you’d have an additional$25,000 at retirement! 

5.’ Review strategies for postponing retirement. You may be able to learn new skills that could
increase your marketability to potential employers. Even a part-time job could reduce your need
to deplete retirement assets.

6. Don’t give up. Many pre retirees falsely believe that there is nothing they can do to build
retirement assets and , as a result. do nothing. Remember that you control how much you invest
and , in many areas, how much you spend. Make a plan – and stick with it.