My pragmatic and realist friend Bob thought my advice to Bill about saving 1/3rd of his income was essentially impossible. He made several practical suggestions. I agree with them and pass them on. My point was more that there are several ways you can save large, tax advantaged amounts in an aggressive catch up mode. Bill may not be able to live on 2/3rds of his income, but if he could he has avenues available to him.
Bob suggests:
- Bill delay retirement and work more than 15 more years
- Bill's spouse go to work and contribute to the retirement savings
- Bill lower his savings target to a more achievable level
- Bill spend down his principle over his expected life span
- Using a reverse mortgage (you can sell to your kids, you don't have to use a bank to do this)
- Selling collectables from your home
I mentioned to Bill in a comment that he could also raise the risk in his portfolio to above the 8.0% I had assumed in the calculations.
So Bill, here are a lot of other suggestions to supplement the hard to achieve advice of the previous post. I hope they help.
Larry
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