Starting From Zero at 51: What to Do When You Have No Retirement Savings

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A 51-year-old has no retirement and turned to Reddit (NYSE:RDDT) for advice."I have $36,000 in my 401(k)," the 51-year-old said. "I'm guessing I'll have $250,000 when I retire."Several Redditors shared their advice in the comments.Don't Miss:Kevin O'Leary Loves ‘Wonderful Recurring Cash Flows' — These Small Industrial Assets Deliver Just That7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the PlatformThe 51-year-old has a history of contributing to a 401(k) and having to withdraw funds early when finances got tight. That's why one commenter suggested establishing an emergency fund that can cover six to 12 months of living expenses.“You need an emergency fund so you can stop using your retirement savings when a life crisis hits. Aggressively cut expenses," the commenter said.The next bit of advice will make it easier to build an emergency fund. Not only does cutting expenses give you more money to put into the emergency fund, but your monthly expenses also go down. Since emergency funds are based on your monthly expenses, cutting costs will reduce how much you actually need in your emergency fund to cover six months of expenses.As a bonus, the 51-year-old should store the money in a high-yield savings account. That way, the money continues to grow at a decent rate.Trending: Microsoft's Climate Innovation Fund Just Backed This Farmland Manager — Accredited Investors Can Join the Same FundThe 51-year-old anticipates retiring in 16 years, but that may not be the case with their current finances. A $250,000 nest egg is not enough. The 4% withdrawal rule comes to $10,000 per year, which isn't enough to live on.The only saving graces are that the 51-year-old should have their house paid off by then, and Social Security paychecks can help a little. However, the more beneficial option may be stretching the retirement age to 70. That way, the 51-year-old will have a few additional years to contribute to their portfolio without a mortgage weighing them down.A portfolio can grow substantially once you put the monthly mortgage payments into your brokerage account. It presents a promising opportunity, and by working for a few more years, the nest egg doesn't have to stretch as much to ensure the 51-year-old doesn't run out of money.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,751.50 -1.00 (-0.01%)Dow Futures46,728.00 +4.00 (+0.01%)Nasdaq Futures25,003.25 +0.25 (+0.00%)Russell 2000 Futures2,481.10 -0.80 (-0.03%)VIX16.10 +0.65 (+4.21%)Gold3,780.50 +5.40 (+0.14%)PortfolioSign in to access your portfolioSign inTop gainersMTSR Metsera, Inc. 53.58 +20.26 (+60.80%)DGNX Diginex Limited 17.75 +4.15 (+30.51%)QMMM QMMM Holdings Limited 105.90 +23.06 (+27.84%)GGAL Grupo Financiero Galicia S.A. 32.03 +5.58 (+21.10%)BBAR Banco BBVA Argentina S.A. 9.85 +1.66 (+20.27%)Top losersCOMP Compass, Inc. 7.92 -1.48 (-15.74%)QUBT Quantum Computing Inc. 20.21 -3.06 (-13.15%)OPEN Opendoor Technologies Inc. 8.38 -1.19 (-12.43%)PTRN Pattern Group Inc. 14.00 -1.63 (-10.43%)BMNR Bitmine Immersion Technologies, Inc. 55.10 -6.19 (-10.10%)Most activeNVDA NVIDIA Corporation 183.61 +7.01 (+3.97%)OPEN Opendoor Technologies Inc. 8.38 -1.19 (-12.43%)SNAP Snap Inc. 8.53 +0.37 (+4.53%)PLUG Plug Power Inc. 2.6500 +0.4700 (+21.56%)BBAI BigBear.ai Holdings, Inc. 7.08 +0.23 (+3.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBETR Better Home & Finance Holding Company 49.98 +15.89 (+46.61%)RIVN Rivian Automotive, Inc. 15.24 +0.86 (+5.98%)KVUE Kenvue Inc. 16.97 -1.37 (-7.47%)NVDA NVIDIA Corporation 183.61 +7.01 (+3.97%)APLD Applied Digital Corporation 24.45 +3.97 (+19.38%)Top economic events