Optimal Finance Daily Podcast: Episode 3412

Title: Older and Don't Have a Retirement Plan? Do This
Author: Christina Browning of Our Rich Journey
Host: Diania Merriam
Air Date: January 5, 2026

Episode Overview

In this episode, host Diania Merriam narrates and discusses a post from Christina Browning of Our Rich Journey. The focus is on actionable steps for people in their 40s, 50s, 60s, or beyond who feel behind—or haven't started—on their retirement planning. The episode breaks down essential strategies, addresses late-starter anxieties, offers hope and practical tools, and highlights how it's genuinely "never too late" to turn things around for future financial security.

Key Discussion Points & Insights

1. Understanding How Much You’ll Need for Retirement

• Determine Your Number:
  • Don’t fixate on perfection; get a close estimate as a starting point.

    “Just remember, you don’t need an exact number, you just need the closest estimate. You can always modify this number later on.” (Christina Browning, 01:25)

  • Steps:
    • Pull up your current budget.
    • Predict how expenses will change in retirement.
    • Build a retirement budget (with existing tools or a free template).
    • Estimate annual expenses and multiply by 25 to get a target savings amount (the “25x rule”).

2. Start Contributing to Retirement Accounts Immediately

• Leverage Tax-Advantaged Accounts:
  • 401(k), Traditional IRA, Roth IRA, HSA, etc.
  • Catch-up contributions are available if you're over 50, allowing higher annual deposits and improved tax savings.

    “If you’re over 50, you can contribute more to certain retirement accounts. And this is great because these accounts aren’t taxed, meaning you reduce your taxable income significantly.” (Christina Browning, 02:50)

3. Consider Target Date Funds—But Be Intentional

• Pros:
  • Simple, self-adjusting investment options based on your estimated retirement date.
  • Frequent automatic rebalancing reduces the need for hands-on management.
• Cons:
  • Higher fees than a DIY portfolio.
  • Christina prefers low-fee index fund DIY construction.

    "Aman and I don’t own any target date funds because of this. But investing in target date funds is better than not investing at all." (Christina, 03:35)

4. Identify and Maximize Retirement Income Entitlements

• Social Security:
  • Check your Social Security statement online for an estimate.
  • Options to collect begin at 62 (reduced), 66-67 (full), or 70 (greater than full).
• Pensions:
  • Investigate both current and past employers for eligible pensions.

    “Go to the Social Security Administration’s website and get a copy of your Social Security statement. This will show you how much you can expect to receive at different ages.” (Christina, 04:45)

5. Embrace Sacrifice: Cut Costs Now for Comfort Later

• Tactical Budget Cuts:
  • Examine every budget line item—large and small.
• Specific Housing Strategies:
  • Downsize to a smaller, more affordable living space.
  • Relocate to areas with a lower cost of living.
  • Utilize your home for income (e.g., Airbnb).

    “Housing usually accounts for a whopping 30% of the average person’s expenses.” (Christina, 05:38)

6. Avoid Taking On New Debt—Especially for Others

• Student Loans & Family Obligations:
  • Prioritize your retirement security over taking on new debt, even for children’s education.

    “Remember, you can't borrow or get a loan for your retirement, but your children can for their education.” (Christina, 06:34)

    • Tough-love advice: Don't jeopardize your retirement if your own plan isn't solid.

7. Pursue Side Hustles to Supplement Your Savings

• Mindset Shift:
  • Channel your passions into income-generating side projects.
  • Even committing 10 hours per week can make a substantial difference.
  • Side hustles can continue into retirement if they’re enjoyable and sustainable.

    “Try to invest at least 10 hours a week into something you really enjoy that can also make you money because your passions are the best things to channel into side income.” (Christina, 07:25)

8. Stay Hopeful—It’s Not Too Late

• A Decade Makes a Difference:
  • Even starting at 50, disciplined effort for ten years can build a secure retirement.

    “Remain hopeful about your situation because financial independence is possible even when you’re starting late.” (Christina, 08:00)

Host’s Commentary & Additional Insights

Reflecting on Target Date Funds (10:41)

• Diania’s View:
  • Her personal approach mirrors Christina’s: She doesn't invest in target date funds now but sees their merit for overwhelmed beginners.

    "If the alternatives are to not invest at all, work with a financial advisor who's selling you expensive financial products you don't need, or leaving money on the table in the form of a 401k match... a target date fund could be a good temporary solution." (Diania Merriam, 10:41)

  • Important Note:
    • Only use target date funds in tax-advantaged accounts.
    • She recounts the 2021 Vanguard situation where holding such funds in taxable accounts triggered unexpected and massive capital gains taxes.

Memorable Quotes & Moments

• On Prioritizing Yourself:

  “You can’t borrow or get a loan for your retirement, but your children can for their education.” (Christina, 06:34)

• On Starting Late:

  “Remain hopeful... financial independence is possible even if you’re starting late.” (Christina, 08:00)

• On Simplicity Versus Perfection:

  “Just begin with your closest estimate.” (Christina, 01:34)

Timestamps for Essential Segments

• 01:25 — Estimating Retirement Needs
• 02:50 — Catch-up Contributions & Retirement Accounts
• 03:35 — Target Date Fund Considerations
• 04:45 — Social Security and Pensions
• 05:38 — Cutting Costs: Focusing on Housing
• 06:34 — Debt and Family Obligations
• 07:25 — The Side Hustle Mindset
• 08:00 — Staying Hopeful and Time Horizons
• 10:41 — Diania’s Target Date Fund Advice

Final Thoughts

Christina Browning’s roadmap—narrated and expanded upon by Diania Merriam—provides a motivational, tactical guide for anyone feeling behind on retirement savings. Key takeaways:

• Get real about your numbers.
• Prioritize tax-advantaged saving and avoid unnecessary debt.
• Make conscious spending cuts.
• Consider income supplements.
• Most importantly, adopt a hopeful mindset. Ten years of intentional action can redefine your retirement outlook, no matter when you start.