5 Smart Money Moves to Make When You Are in Your 50’s

So you are in your 50’s? Here are the smart financial moves you should be making right now:

RETIREMENT RED ZONE

At this point in your financial life you’re in what I would call the Retirement Red Zone. You are getting close, but you’re not quite there yet and you still have some important work to do.

SMART MOVE #1

PICK A DATE

TIP: Start Thinking About an Approximate Retirement Date

Will you work 5 more years? 10 years? 20? You need to have a rough idea of when you may stop working so you can plan accordingly. The longer you work the less you’ll need in retirement savings and vice versa.

SMART MOVE #2

RAMP UP SAVINGS

TIP: Take Advantage of Catch-Up Contributions

Ramp up your savings if you can and take advantage of catch-up contributions. For the current catch-up contribution allowances click here.

A Catch-Up Contribution is a type of retirement savings contribution that allows people over 50 to make additional contributions to their 401(k) and/or individual retirement accounts.

SMART MOVE #3

REDUCE DEBT

TIP: Retiring With Major Debt Isn’t Good for Your Financial Health

Aim to reduce your debt as much as possible by the time you retire. Retiring with major debts won’t be good for your retirement and can prove to be extremely stressful for both you and your spouse.

SMART MOVE #4

CONSIDER LONG TERM CARE INSURANCE

LTC = Long Term Care Insurance

Long Term Care Insurance is coverage that provides nursing-home care, home-health care, personal or adult day care for individuals above the age of 65 or with a chronic or disabling condition that needs constant supervision.

LTC is a smart move for most of us, but can be too costly for many to purchase. If you have the means to purchase it, now is the time to do it.

If you buy a policy in your 40’s you risk paying too much over the life of the policy. On the flip side if you wait until 60’s or later the premiums skyrocket and you may not even get the coverage. So, your 50’s is the sweet spot to make that purchase.

SMART MOVE #5

UPDATE YOUR WILL

Nearly ½ of All Americans Over 50 Don’t Have a Will!

According to AARP nearly half of all americans over age 50 don’t have a basic will, so make sure you have one.

For more info on the importance of having a will watch this video:


Sources

  1. This material was prepared, in part, by MarketingPro, Inc.
  2. http://www.investopedia.com/

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