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I can understand how you get in that situation. You enjoy life and live for today!! I never even thought I would get old and have to worry about retirement. Then one day you realize that you do not want to work the rest of your life and start looking at what you have saved. I even thought that social security would be enough. You eventually realize you only have a certain amount of years work to save for retirement. The end game.
Your biggest problem is the IRS debt that I see. Do those lawyer that I hear on the radio for getting rid of some of the IRS debt work? I would find out about that option if it is worth it.
You make enough income that you should be able to max out your 401k.
The lawyers on TV are shysters. First session, you meet with a sales guy who extracts money from you to take your case. Then you never hear from the organization again.
Best to play it straight. Call the IRS and ask to speak with "Offers in Compromise" branch. Workout is free, and they do work with you. During consulting firm years, I had IRS as a client. I rank my observations as credible evidence.
I lived like everyday was my last day. Lived in Australia for 5 years and traveled the world. Always had good jobs and just didn't deal with reality.
But TODAY, I set up my 401K to take out 8% up front from my pay check and additional bonuses will be sent straight to the IRS.
I probably suffered a bit of depression from time to time as well. But that is an excuse, because i had really good jobs and have a really good one now. I will make more than $120 this year for sure and I am not married, no kids, have a company car, the works. I am here to get advice and implement asap.
Pay off the IRS soon as possible. No one can get into your business like the IRS. They can take money from any where without asking. From your banking accounts and refunds you get etc. Get them off your
back. You should be able to do that in a year with money you are making and no expenses. Then start paying off student loans. You lived great now it is time to pay up. Within 10 years you will be in a good financial shape. Start with the IRS just trying to give you good financial advice.
Pay off the IRS soon as possible. No one can get into your business like the IRS. They can take money from any where without asking. From your banking accounts and refunds you get etc. Get them off your
back. You should be able to do that in a year with money you are making and no expenses. Then start paying off student loans. You lived great now it is time to pay up. Within 10 years you will be in a good financial shape. Start with the IRS just trying to give you good financial advice.
Pay off the IRS soon as possible. No one can get into your business like the IRS. They can take money from any where without asking. From your banking accounts and refunds you get etc. Get them off your
back. You should be able to do that in a year with money you are making and no expenses. Then start paying off student loans. You lived great now it is time to pay up. Within 10 years you will be in a good financial shape. Start with the IRS just trying to give you good financial advice.
Yup... both of those debts will ride you FOREVER. Tax and student loans cannot be discharged in bankruptcy.
Once those are dead, max out IRA (you can contribute $23K per year) and IRA (another, what, $5500 or so? Maybe more because you're over 50). Live on rice and beans, beans and rice like Dave Ramsey says. Kill ALL debt, even if you have to live like a pauper. Because it's a lot easier to live like a pauper now than when you're older, cannot work anymore, and that's your locked-in-for-life future.
Create a budget and stick with it. Dump every expense you can... use only a prepaid phone, no cable, the cheapest Internet you can get, no Netflix, get books and movies from the library, etc. No eating out, no car payments (buy ten year old Hondas or Toyotas and drive them til the wheels fall off, then get another).
Your life should be able pinching every penny until it screeches, and hoarding every dime you can.
OP and anyone else in that situation: it's never too late to start preparing for retirement. After raising 2 kids with no child support, putting one of them plus myself through college, and being the infamous Retail Queen, I woke up one day and realized I had nothing. Well, I do have a pension where I work, but no matching. The first thing I did was gather all my credit card statements and saw how much the interest was. It shocked me COMPLETELY! So, I found a company who would grant me a consolidated loan, 5 years at 8%. I had been paying close to $1800 A MONTH on credit card bills. It's now only $700. It will be paid off before I retire (In 3 yrs at 62). I always paid extra on the student/parent loans and will have those paid off before I retire. I purchased a brand new car that I knew would be paid off before I retire. The hardest thing for me to do was stop online shopping. Very painful ��
With saving that $1000 a month I can now put some in my savings (easy, liquid money), some in my 403B. So, when I retire at 62, I'll have no debt. I'll probably take my SS early but hold on to my 403 for a while, pulling only as needed (it's taxable income). So, I'll only be paying taxes on my pension.
Trust me...if I can do it, ANYONE can do it. And anytime I get a pay increase, it goes directly to one of my accounts...direct deposit/auto-pay so I never see it.
It's do-able. So, keep at it and be proud of every step forward.
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