A successful attorney in Bloomington, Ind., Sam Ardery appears to be the epitome of prosperity. But even he is worried about playing catch-up after a failed real estate investment 14 years ago sidetracked his retirement plans.
| Row 0 - Cell 0 | Six Ways to Build Your Retirement Savings |
| Row 1 - Cell 0 | How Working Longer Adds Up |
| Row 2 - Cell 0 | The Cost to Crack Your Nest Egg |
"I lost as much money as I could make in three or four years -- enough to put all three of my kids through college," says Sam. He and his wife, Patty, used all of their savings and remortgaged their home to settle the debt -- a fact, Sam says, that Patty "has never thrown up to me, which is probably why we have been married for 25 years."
Sam, who recently turned 50, sat down with his financial adviser, David Hays, of Comprehensive Financial Consultants, in Bloomington, to figure out what he needs to do to catch up now that retirement no longer seems so far away. Saving enough is still a challenge because two of his daughters are enrolled at DePauw University and a third is in high school.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We're talking more than just skipping a Starbucks a week," says Sam. "We're really stepping up our savings."
He contributes about 8% of his income to his firm's 401(k) plan, but as a partner, he is not permitted to contribute the maximum in 2008 of $15,500. And although he is now old enough to kick in $5,000 more in annual catch-up contributions, he says that with private-college tuition bills for two daughters, it's not likely.
Sam has increased his salary draw to shift more into savings. For his youngest daughter, he is funding a 529 college-savings plan, for which Indiana offers a $1,000 state income-tax credit. He also contributes regularly to an investment account managed by Hays. His goal is to save $1 million over the next 15 years.
Hays thinks that's manageable. "I've seen people sock away one-third to one-half of their retirement nest egg during their peak earning years," he says. Because the Arderys have little debt other than a mortgage and generally live below their means, he predicts that Sam and Patty will easily reach their goal. "Sam's a doer. He'll make things work out."
NEXT: LITTLE SAVINGS FOR RETIREMENT
SEE ALL NEST-EGG WOES
No. 2: Lack of Focused Strategy
No. 4: Little Savings for Retirement
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Past Performance Is Not Indicative of Your Adviser's ExpertiseMany people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
457 Plan Contribution Limits for 2026Retirement plans There are higher 457 plan contribution limits in 2026. That's good news for state and local government employees.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2026SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $70,000 in 2025, and up to $72,000 in 2026.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
SIMPLE IRA Contribution Limits for 2026simple IRA For 2026, the SIMPLE IRA contribution limit rises to $17,000, with a $4,000 catch-up for those 50 and over, totaling $21,000.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2026retirement plans The Roth 401(k) contribution limit for 2026 has increased, and workers who are 50 and older can save even more.
