You are 55 years old (or somewhere around there) and your company is going to force you to retire at 65. You have $35,000 saved in your 401K and that’s all. The house will be paid for by then so you will have a place to live. The company pension will pay about $1,000/month and so will Social Security. What will my life style be like at that time?

Let me give you a clue. You are going to need just about as much as you are making now even with the house paid for. If you are lucky you might have health insurance with your pension, but don’t count on it. You hope Uncle Sam will help out. But don’t count on it.

When that savings you have runs out maybe one of your kids will let you and the misses have the spare room. Scary, huh! Maybe one kid lives in Minnesota where you can spend the summer and the other in Florida where the winters will be nice. But don’t count on it.

You might get lucky and buy one of those stocks that skyrocket from $2.00 to $200. Those chances are 1 in 100 and you don’t have enough money to be taking chances. But don’t count on it.

Whatever time you have left between now and retirement you should start managing your assets to have them grow and compound better than in the past. If you continue to do what you have done you are going to have the same results. It is a choice between cat food and filet mignon.

A better portfolio manager is not the answer. Saving more will help, but you need to live today. Having your house paid for is a huge plus. A second job with all that income going to savings makes sense – if you can do it.

One of the better solutions is starting a business you can run from home. The Internet has many offers. My caveat here is never send anyone upfront money. It takes the Avon lady 3 to 5 years before she makes any money. There are many legitimate small businesses like this that can provide a second income, but you must invest both time and effort and be persistent. You must work it every day.

Don’t choose any business that requires a substantial capital investment. If you have a friend or relative that has a home-based business you will want to spend time with him. Even if you don’t use that vehicle you can learn plenty from that person.

You local library has hundreds of books devoted to helping folks start a business. The Internet is a great source. Take time to investigate and don’t take anyone’s word for their pie-in-the-sky story. Always get references and carefully check them. You want to talk to someone who recently started in that business about 6 months ago, another about a year before and a third about 2 years prior. Maybe several of each. Once you make the commitment you must hit the ground running and don’t stop. Either it will work in a few months or it won’t. Hard work is the only way you will find out.

It is not too late provided you start NOW.

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