Ok, so after 20some years of being married and NOT thinking I would ever need a retirement fund..(wasnt working fulltime)..I divorced and am now faced with working fulltime for as long as I can! I am 49 years old and have no retirement plan. Im still working on cleaning credit up from divorce and have started a savings plan..but what would be the best way for me to plan my retirement. Can I catch up at all???

Its never too late to start! Does your employer offer a 401k program, and if so, do they match contributions up to a certain %? If so, I would recommend this, because up to that matched percentage you would automatically double your money.

Remember also, that it is important to pay down debt. Consider a credit card with a balance of $1000 at an interest rate of 15%. If you were to pay that off, you would be making a 15% return (you wouldn't have to pay someone else that 15%)!

I have also heard good things about ROTH IRAs. I think the annual contribution limit is $4000, but it grows tax free. Another good benefit with the Roth is if you get in a pinch and really need the money, you can withdraw the contributions (not the earnings) without any penalty.

Regardless, any saving for retirement is good, and is much better than to avoid the situation and not have any money at all for retirement.

Good Luck!

I'm right there with ya, jodyangel. I am 41 and have gone through a similar situation. In fact, I was just now researching retirement options myself. I have found alot of good info on www.fool.com and www.bankrate.com.

Some things I'm learning:

First things first: Pay off all unsecured debt, build up an emergency fund of 3-6 month's income (there is debate on which of those to do first, I think it depends on your individual situation, I am doing both at the same time) and then start saving for retirement. I have a retirement plan at work and they automatically take the money out my pretax income.

Those are the first immediate things to do. Motley Fool has alot of great info on different ways to save for retirement, all kinds of calculators, message boards, etc.

Personally, after I'm done paying off CC's and building up the E-fund, I'm thinking of opening a Roth IRA and buying some savings bonds to start with.

Others on this board have suggested going to a FEE-BASED financial planner. It costs a few hundred bucks but they can steer you in the right direction. Don't go to one who works for Amex or some company like that, because their main interest is making a commission, and not necessarily what is in your best interest.

Motley Fool says Repeat after me: Retirement savings is for RETIREMENT.

I don't know if you already thought of this: Have you considered taking your ex-husband back to court and asking for a portion of his retirement?

That would be a great way to jump start your savings plan!!

Just tossing out ideas.

Michael

Jody,

David Bach's "Start Late, Finish Rich", you should be able to get it in the library by now but is really worth buying. I'm partly reading it now (am been distracted by another book), but it is great. I'm in my middle 40s but have lots of debt that I'm working on.

well I do recieve a "portion" of it now, which pays half my mortgage, and IM grateful for that! When he passes away I will recive about $3000 a month since Im named the benificiary and it cant be changed. Hes really pissed about that tho....

so I do have that to count on if he passes away before me. If I die first then it really doesnt matter anyway lol!! Thanks!

Aside from various retirement plans, most do have "catch up" provisions once you turn 50, so there's that. The best sock it away plan is a solo 401K, if you have a business; very generous limits with contributions from both the employee and employer (you both times). Good luck, stay focused on the goal.