Planning for retirement might seem like a far-off concern, but the earlier (or smarter) you start, the more comfortable your future will be. If you’re a homeowner in Metro Detroit, you have more options than you might think to quickly grow your retirement savings — even if you’re getting a late start. Here’s how:
1. Maximize Your 401(k) and Roth IRA Contributions
Example: Let’s say your employer matches 100% of your contributions up to 5% of your salary. If you earn $60,000 and contribute $3,000, your employer also adds $3,000 — that’s an instant 100% return.
If you’re not contributing enough to get the full employer match, you’re leaving free money on the table. Increasing your contribution to meet the match can make a major difference over time, especially with compound growth.
In addition to your 401(k), consider opening a Roth IRA. While contributions are made with after-tax dollars, all qualified withdrawals in retirement are tax-free — a big win if you expect to be in a higher tax bracket later.
Tip: As of 2025, the Roth IRA contribution limit is $7,000 per year (or $8,000 if you’re 50+ and eligible for catch-up contributions). Set up automatic contributions so you’re consistently building your fund.
2. Pay Off Debt to Free Up Cash
High-interest debt, like credit cards or personal loans, can drain your financial resources faster than you realize.
Example: If you have a $10,000 balance on a credit card with 20% interest, that’s $2,000 a year just in interest — money that could be working for your future instead.
Make a focused plan to eliminate high-interest debt. Use methods like the avalanche method (pay off highest-interest debt first) or snowball method (pay off the smallest balances first) to gain momentum. Once debts are gone, redirect those payments into your retirement accounts.
3. Get a Side Hustle and Invest All the Profits
Adding a second income stream can accelerate your savings plan dramatically — especially if you don’t need that income to survive right now.
Example: Delivering groceries, freelancing, tutoring, or working weekends at a local shop could earn you an extra $500–$1,000 per month. Invest all of it into your 401(k), Roth IRA, or even a simple brokerage account geared toward retirement.
Tip: Look for side gigs that align with your skills or passions to make it feel less like “work.”
4. Sell Your House and Downsize
This might be the fastest way to put a large sum into your retirement fund — especially if you’ve built up equity in your home.
Example: If your home in Metro Detroit is worth $300,000 and you owe $180,000, you could walk away with $100,000+ in profit after closing costs. That could immediately go into investments that grow over time.
Downsizing to a smaller, more efficient home or renting for a while can reduce monthly expenses like mortgage payments, property taxes, insurance, and utilities.
Plus, if you move closer to work or family, you could save on gas, reduce commute stress, and improve your quality of life — all while building a more secure retirement.