A Late-Starter's Guide to Saving for Retirement

Home equity is the most common asset that can beneficially be converted into investments. Antiques, jewelry and collectibles of all kinds can also be converted into productive investments.

Currently, home prices are high in many markets as a strong job market and rising number of baby boomers with children drive up prices. However, when these children move out and mom and dad move into their retirement communities, non-retirement neighborhood prices will suffer. Now may be a good time to sell high and buy low by moving from a booming family neighborhood to a still-cheap retirement neighborhood -- and invest the excess equity.

Think twice before you withdraw equity by taking out a second mortgage, however. Another mortgage will likely add stress to your life: You will increase your expenses, and you could lose your house if either the investment market or the housing market crashes.

Emotional Consequences of Saving
If you've reached age 50 or 60 and haven't yet started to save for retirement, it is probably not because the thought hasn't occurred to you. Most likely, something else is going on. If you've tried for years and you find you simply cannot save, there may be psychological forces at play.

Under the best of circumstances, reducing spending, moving and changing jobs or careers all have their own emotional challenges. When you have to make one of these changes out of dire necessity, the stress can be overwhelming.

Help is available: therapy, consumer credit counseling, Workaholics Anonymous, religious groups, and investment clubs. If you cannot find appropriate help, start your own group: Late Starters Anonymous.

Next: Investing for High Returns