Six Reasons Nothing Matters More Than Your Retirement Date After Age 50

In the early years of your investing career, nothing matters as much as your savings rate.  As time goes on, the savings rate matters less and less and the portfolio return matters more and more.

However, once you get into the last 1/2 to 1/4 of your working years, your date of retirement matters more than anything else for a number of reasons.

Six Reasons Nothing Matters More Than Your Retirement Date After Age 50 

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By the time you hit age 50, you ought to have a large portfolio, probably a 7-figure amount, for most physicians and other high-income professionals.

Reason # 1 Compound Interest

The effect of returns of just 5 to 10 percent on your portfolio will dwarf the amount you can contribute and save each year.

But wait, there’s more.  If he’s still working full-time, he can also use those last couple of years to stuff his retirement accounts extra full.

Reason # 2 Additional Savings

“Start in your 30s,” we say, or better yet in your 20s or before you can talk.  But the truth remains that it is far easier to save in your 50s than at any other time.

Reason # 3 Easier To Save Even More In Your 50s

The longer you work, the less time your retirement nest egg has to last.  Think of it as burning the candle at both ends — in a good way.

Reason # 4 You’re Mortal

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Financial and Retirement Planning for Physicians