How to Double Your Nest Egg in the 5 Years Before Retirement
If you're in your mid-to-late 50s or early 60s and feel like retirement is slipping out of reach, you’re not alone. Many people reach this stage and wonder if they’ve missed their window. But here’s the truth: the last 5 years before retirement may be your most powerful years to save and build wealth.
👉 Want to learn how to retire without the worry of running out of money in retirement? Click here to watch this video
Why listen to me?
As a Certified Financial Planner™ and retirement specialist, I’ve helped countless clients restructure their final working years to supercharge their savings and double their nest egg. Investors like the way I break down complex tax, savings, and investment strategies into actionable steps that lead to real results.
Whether you're catching up or optimizing your wealth, this guide will walk you through how to double your portfolio in five years—without winning the lottery.
Key Point / Summary
- Compound interest and intentional savings are your most powerful allies.
- The 5 years before retirement are your last chance to leverage income and reduce lifestyle costs.
- With strategic investing and cash flow redirection, you can potentially double your portfolio.
What Makes These Final 5 Years So Powerful?
1. Compound Interest Is Finally Working in Your Favor
In your 20s and 30s, compounding feels like watching paint dry. But in your 50s and 60s, it starts to show its true power. In my experience, this is the stage where portfolios start to snowball—fast.
Example:
The Vanguard S&P 500 ETF (VOO) has averaged an 11.2% annual return over 40 years.
At 7% growth, a $375,000 portfolio doubles to $750,000 in 10 years—but with extra savings, you can cut that time in half.
2. You Likely Have More Free Cash Flow Now
Clients I work with often have fewer financial obligations by their late 50s:
Kids are out of college
Mortgage is nearly paid off
Fewer large lifestyle expenses
This newfound cash flow is your greatest asset. Redirecting just $37,500 annually into investments with a 7% return could double a $375,000 nest egg in 5 years.
Conservative Example:
At 5% annual growth, the required savings jumps to $48,000/year.
Still achievable if you use your mortgage payoff and reduced household costs to fuel your accounts.
What Should You Do to Get There?
1. Target a 10% Savings Rate of Your Current Portfolio
If you have $500,000 saved, aim to add $50,000 annually. That includes 401(k), Roth IRAs, and brokerage accounts.
Tip: Use MoneyGeek’s compound interest calculator to estimate your numbers.
2. Max Out Your Roth Contributions
2025 Limits (Age 50+):
- Roth 401(k): $30,500
- Roth IRA: $8,000
In my experience, using Roth accounts not only shelters growth but also improves your retirement cash flow in a higher tax future.
Why?
Because we’re currently in historically low tax brackets that are set to rise after 2025, once the Tax Cuts and Jobs Act sunsets.
3. Consider a Mega Backdoor Roth
If you have a high income and a generous 401(k) plan, this strategy could allow you to contribute up to $73,500 in total annual retirement savings in 2025—some of it as after-tax Roth.
I walk clients through this step-by-step. If your plan allows it, it can supercharge your tax-free retirement money.
4. Reallocate Old Expenses
If your mortgage is paid off, or your kids are financially independent, use that money wisely.
Example:
- A $1,500 monthly mortgage payment = $18,000/year.
- Combine that with a spouse’s contributions and you're at $38,000+ in annual savings.
That’s how you double a portfolio in a short time.
But What If You’re a Conservative Investor?
If your average annual return is 5% instead of 7%, you’ll need to save more.
Rule of Thumb:
- At 5%, double your nest egg in 5 years by saving 13.3% of your current balance annually.
- For a $375,000 portfolio, that’s $48,000/year.
This is achievable for many families who are done with college tuition, private schools, and big mortgages.
Additional Levers to Pull
1. Max Out Your HSA (Health Savings Account)
2025 Family Limit (Age 55+): $9,650
Tax-deductible going in, tax-free coming out if used for medical expenses.
2. Cut Hidden Fees and Inefficiencies
In my reviews with investors, I often find underperforming funds, duplicated holdings, or high-fee products that erode growth. Fixing this could reclaim 1–2% annually.
3. Revisit Your Tax Plan
This is also the best time for:
Roth conversions
Capital gains harvesting
Planning around the 2026 tax hike
Tax strategy + savings rate = real wealth acceleration.
Conclusion
The 5 years before retirement are not a time to coast—they’re a time to sprint. You may not be able to add decades to your savings timeline, but you can use this window to make focused, intentional moves that double your nest egg.
It’s not too late—and it doesn’t require magic. It requires a plan.
👉 Want to learn how to retire without the worry of running out of money in retirement? Click here to watch this video
FAQs
Q: What if I can't save 10% of my portfolio annually?
A: Save what you can and focus on growing your income or reducing expenses. Even 5–7% can make a major difference when combined with good investment returns.
Q: Should I prioritize Roth over Traditional 401(k)?
A: If your tax rate today is lower than what you expect in retirement (very likely in 2025 and beyond), Roth may be the better long-term play.
Q: What happens if I delay Social Security until 70?
A: You can use these 5 years to fill the income gap with portfolio withdrawals—then lock in the highest guaranteed monthly benefit for life when you start.
Disclaimer: Case studies are hypothetical and do not relate to an actual client of Lock Wealth Management. Clients or potential clients should not interpret any part of the content as a guarantee of achieving similar results or satisfaction if they engage Lock Wealth Management for investment advisory services.