The financial ramifications of the recent recession could be felt for years by many New Jersey residents that are either approaching or over the age of 50. Many people lost their savings and retirement accounts, lost their homes and/or incurred a great deal of debt in order to survive. As a result, some individuals filed for bankruptcy protection or otherwise started over financially.
The good news is that it is never too late to begin building, or rebuilding, for retirement. Even the IRS allows for people over the age of 50 to save more tax-deferred funds after 50. Starting to save for retirement right away could go a long way to providing the monies necessary to retire comfortably.
However, it is possible this will not be enough for a person to retire completely in 15 to 20 years. There are other ways to maintain an income and lower one’s expenses in preparing for retirement. Learning a new skill that will carry a person through retirement may help. In addition, many people relocate in order to rein in expenses as they approach retirement.
Each individual will need to determine the best course of action for his or her family. A good time to contemplate what to do next and how to start saving for the retirement is during bankruptcy. Hopefully, with the debts that were discharged in bankruptcy gone, New Jersey residents would have more discretionary income to put toward retirement. Coming out of a trying financial situation and turning it into an opportunity is just one of the many benefits filing for bankruptcy can provide for forward thinking individuals that choose to tackle their financial problems head on .
Source: Forbes, Financial Planning For Late Starters In Five Steps, Mitch Tuchman, Nov. 21, 2013
