How To Rebuild Your Nest Egg If You’ve Already Cashed Out Retirement Accounts
Written by
Chris Adam
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Many people may be looking to rebuild their nest egg after cashing out retirement accounts. “I’ve had more of these conversations than I expected, and a lot of people come in feeling like they need to make up for lost time right away,” said Taylor Kovar, CFP, CEO of 11 Financial. “In many cases, that urgency can lead to decisions that are hard to sustain.”
Read on for some expert-backed tips to help you get your retirement back on track.
Also see whether it’s ever too late to catch up on retirement savings.
Take Advantage of ‘Free Money’
“First thing you’d do is take advantage of your retirement plan at work, especially if there is a match involved,” said Brandon Gregg, CFP, advisor with BBK Wealth Management. “When funds come out of your paycheck directly, it can make it easier to save on a regular basis as the funds never hit your bank account. Take advantage of the ‘free money’ from your employer match and let the compounding begin.”
Speaking of compound interest, Andrew Lokenauth, founder of Fluent in Finance, called it “the most powerful wealth-building force in personal finance.”
Look at Short- and Long-Term Options
“It’s possible to rebuild your financial footing by addressing both short-term needs and long-term goals,” said Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth. “You can build cash reserves for emergencies or opportunities and start rebuilding your retirement savings. Take advantage of your employer sponsored retirement plans and open a Roth IRA. Focus on consistency.”
Sell Things You Don’t Need
Melanie Musson, a finance expert with Quote.com, had some advice that may be tough to swallow.
“Give your retirement savings a boost by selling things you shouldn’t have bought. If you have an RV, an ATV or a boat, sell that depreciating asset and invest your proceeds,” she said.
Just Get Started
“Start contributing, even if it’s a small amount,” said Annie Cole, Ed.D., money coach and founder of Money Essentials for Women. “When it comes to investing, your top asset is time — start now and let every month’s contribution compound to start rebuilding your nest egg.”
More From GOBankingRates
