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Is it too late for a 57-year-old single mom with no work pension and no savings to start investing in the stock market to generate a passive income for retirement?

I'm a single, self-employed, 57-year-old mother of four children. I am mortgage and debt-free but have no savings. I can work until age 70 and save 75 percent of my income, which is about $40,000 a year. After 13 years, that should be $520,000 total. I'm thinking about investing in long-term dividends to generate a passive income in retirement. I will need $30,000 per year as living expenses once I retire. I welcome any suggestions or guidance on how to invest my income towards a comfortable retirement.

Debt, Retirement, Pensions, Investing, Stocks
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February 2019

First, I would try to figure out how much Social Security Income you would get when you retire at 70.  If you work from 57 to 70, that is more than 10 years, so you should be eligible for full coverage.  And the fact that you delay your claim till 70, you will have additional payout benefits.  Explore here to estimate your Social Security Payouts:  https://www.ssa.gov/planners/calculators/

In terms of saving, try to set up a Roth 401(k) and then add on a Roth IRA ($19,000 + 6,000).  Although this is just $25,000, it is after tax contribution  Before tax would be very close to $30,000.

As for what to invest in, since you should have at least 10 years of investment horizon. I would be less concerned about income generation.  I would concentrate on growth, until at least 5 years before retirement.  After that, I would start moving my investments into safer choices, such as intermediate bonds, rising dividend mutual funds, income and growth or balanced (30% to 50% equity type of investment.) 

Assuming you get at least $10,000 from Social Security.  A 4% yield on $500,000 investment would give you another $20,000 which adds to the total of $30,000 that you are looking for. 

This is really the very bare minimum because we haven't taken into account of inflation and tax.  However, this is still quite fantastic given the fact that you only start at the age of 57.  One last comment, make sure you plan adequately for medical expense since that is always a big surprise element for people.  

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