If you’re in your 50s, it’s a good time to evaluate your personal finance goals. Did you know that the decade of your 50s is a prime time for building wealth? This is the perfect time in your life to emerge from debt, capitalize on your peak earning years and start to actually see your investments make a significant contribution to your total net worth.
According to Richard Barrington, a personal finance checklist is important at this stage of your life. Here are the recommendations:
- Start saving instead of borrowing – You should have greatly reduced your debt burden at this age. As a result, you will have more of your monthly cash flow to go into savings.
- Make an estimate of your Social Security benefits – The U.S. Social Security Administration will provide information free of charge. This will help you project your retirements benefits based on your earnings so far. This will help you to start thinking about retiring early or working longer.
- Evaluate your retirement goals – This is the time to look at your retirement savings. How much income do you project they will provide. This will also help you determine when you can retire and what kind of lifestyle you will be able to afford.
- Figure out if you need to use catch-up retirement saving opportunities – The government gives you a choice to make additional tax-deferred retirement contributions to 401(k) plans or individual retirement account (IRA) plans once you turn 50. Make extra contributions as an incentive for a nicer lifestyle in retirement.
- Refrain from being too conservative when investing – Age 50 is too soon to step back to a less growth-oriented asset allocation. You have plenty of years for your investments to grow. Your retirement plans will help smooth out any volatility in the market over time.
- Make time to update your will – You should update your will every few years…at least review it and make minor changes. Step back and take a fresh look at what you are leaving to your survivors. And, if you don’t have a will, that is top priority on your “To Do List”!!
- Take advantage of discounts – There are benefits of turning 50 years of age! Yes, more discounts are available to you and don’t be shy to ask for them…you have earned them!
- Check out senior checking accounts – These checking accounts normally have no monthly fees. Go to your favorite bank and ask them what they have to offer to the over 50 crowd!
- Assess your career opportunities – Are you happy in your present job? Do you need to update skills? Take an honest look at your career situation to maximize your last years of working in terms of happiness and ability to earn money.
Well, you must know by now that it is too late for procrastination and too early to slow down. The 50s are prime time for personal finance decisions to make your later years more satisfying!
Personal Finance Checkup is a Must!
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