Holden: OK, so this is really similar to my situation. I’m in my 50s. I’m not saving a whole lot in the 401(k) either, and if you’re in this same circumstance, I would recommend refinancing to a lower interest rate if you can.

Doug: You might want to move to another state. You might find that there is no state income tax, a lower cost of living. You might also save on insurance.

Sheyna: You may want to try investing a little more aggressively. If you’ve been in bonds and CDs — maybe invest in a couple of large-cap stock mutual funds. If you already all in stocks, you may be at the maximum risk you want to take.

Doug: If you have life insurance, and if it’s a permanent policy, you can dip into that for some of that cash, if you need it.

Barbara: You have the opportunity to contribute more to your 401(k) plan or your workplace retirement plan with these catch-up contributions. 

Greg: You can put thousands more dollars into your 401(k) and an additional thousand dollars into your IRA, relative to the annual contribution limits that those under age 50 have. So you have the ability to really accelerate your retirement savings.

Barbara: What does this do? No. 1: You’re saving a lot of money, and No. 2: You’re learning to live on less.

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