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
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:
- This material was prepared, in part, by MarketingPro, Inc.