How can a person who starts earning at age of 35 yrs save money for his/her old age?

Answer 1

If your employer has a 401K plan that you'll be eligible for within a year, be sure to take advantage of it. Put in at least the percentage that the employer will match up to, and it'll be like earning free money throughout the years that you're there. You can also look into starting a traditional or ROTH IRA that allows you to contribute up to a certain amount each year and the investment grows. WIth a traditional IRA, you cannot take money out of the plan until you're at least 59 1/2 years old, so it's a fail safe way to keep from using the money your saving for something else.

Answer 2

You can get into any type of retirement savings program with your company if they have it. A lot of times that is the best way b/c they may match what you put in. The next step if you have the extra money is put it into mutual funds in say an IRA/or a Roth IRA. If you make it automatic and reinvest your dividends and capital gains then you barely notice the money coming out of your pay and compounding interest works wonders. All you need is a little bit. Say 50-100 bucks every time you get paid (provided you can do it that way.) Also if you do a 401k with your company it lowers the taxes you have to pay. Believe it or not 35 is not a late time to start at all...you can still have a pretty nice savings if you start now. The biggest thing to do is to begin. :)

Mutual funds work well too b/c they allow you to invest in many times of stocks and bonds as opposed to just one or two. And when the stocks are down it won't hurt you as much in the long run.

Answer 3

Many many good answrs for this one. Go to your bank or credit union, as them if they have Money Market Savings there, if so put 90% of your current savings into this Money Market Saving s account, its better protected and instead of getting about .40 % interest on you regular saving, you will get between 3%-4% percent savings in the money market Savins, also you can have money from your earnings each month go into a CD, use 3 month CDs. as the money will add to them faster and as they grow lets say in 5-8 years, if you dont touch those CD's let the interst keep growing, they will be worth a Few thousand dollars each, Plus CD's are very safe, Well protected not like the Stock markets or Mutual funds. Average on 3 month CD's should be from 3.75% to 4.5% interest. Its not the lottery, but its constant growth.

At work you can find out if you do have a 401-k. If so have a certain amount percentage withdrawn from your pay check , usually at work human recorses will tell you that the company will meet your percentage to a certin amount, maybe 2-3%, So make sure you cover this amount of percent to go into the 401-k.
buy the time you retire or leave the company, the amount you have built up will be doubled as the company will have to match that amount to a cetain percentage. When the day comes and if you are not of the retirenment age yet, make sure you dont take the money out, go to the bank or credit union and have your 401-k Rolled Over into another account, thus you wont have a big tax taken from it, sometime people take the money out from the company thinking they have free money to spend and not know that the government will take up to 50% of it, when they are not of retirenment age, its called an Early withdrawl penalty. so be carefull when that day comes, to make sure to Roll this money from the company into something else at the bank you are at.
There you go. Simples Stuff that is very safe.

Answer 4

Don't get hung up on the "starting work at 35" part of this. Many people start work as teenagers, and by 35 have not saved a dime. In fact, according to statistics, we are not savers, with the average household having a minus 1% net worth.

That means we owe more than we own. This is usually because we have taken loans to buy things that go down in value, like new cars, big screens, boats, etc.

Start spending less than you earn and tuck the leftovers into a safe investment. You can read over 40 articles on this subject at the site listed below.

Answer 5

I assume that you are UK based so my answer is.

First up pensions. A pension is merely a tax advantaged wrapper that gives you tax incentives to save but restricts you on how the money comes out - eg only 25% as tax free cash and the rest as taxable income.

For every £78 you put in to a penion, £100 is invested. If you are a higher rate taxpayer, you can claim further tax relief via your self assessment return.

Many employers will match an employees contribution to a pension so I would check this out.

Next Individual savings accounts. Whilst you do not get tax relief going in to this type of plan, any investment within them is free of capital gains tax and some income taxes.

You can contribute up top £7,000 pa to a maxi isa or £3,000 to a cash isa and £4,000 to an equiy ISA.

Next property. You may have missed the boat for the moment but a buy to let investment is not a bad idea over the long term. As you have 30 years to retirement, long term fits the bill!

Good luck :)

Answer 6

Put as much money as you can into a Pension (SIPP) scheme.

START NOW - every £ you put in now is worth about £10 later ... 35 is already late - the recomendation is to put in 10% of your salary starting from 25. You will need to put in about 20% of your Salary.

Your Pension Provider claims back Tax. You contribute 78%, they get 22% back from Inland Revenue - for example if you put in £7800, the Pension Providers get back another £2200 making your fund £10,000.

If you pay Tax at 40% it's even better ! (you claim back the extra 18% in your personal Assessment at the end of the year)

Max. contribution == your annual salary !

It doesn't have to be 'new' money, you can put in existing savings ... it's the fastest guaranteed way to turn £7,800 into £10,000 that exists (until Gorden puts a stop to it)

NB. Buy Index Tracker Funds.

Answer 7

Just do it!

IRAs, 401(k)s and all those things are great, but none of they will do you any good if you don't put any money into the account. Therefore, the secret is to put some money somewhere....anywhere is better than no where.

Make saving for the future a top priority and "just do it."

Answer 8

Assume you have 30 years to build a nest egg. Pensions can be a good way of saving if your company runs one make some additional voluntary contributions to boost your final payout. If you have spare cash buy long term bonds that have a good rate. Aim to save a third of your take home pay.

Answer 9

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Answer 10

The best thing i can recommend is that if you have any debts, you must be willing to do without any extras like going out and put that money towards getting your debts paid off. Once you are debt free, you'll have more and more money to set aside and get good advice about investing it. Good luck!!!