5 money moves to make in your 50s to set yourself up for retirement
Are you in your 50s and starting to think about retirement? It’s never too early to start planning, and there are a few key money moves you can make now to set yourself up for a comfortable retirement.
Here are 5 of the most important money moves you should make.
1. Review your retirement plan
The peace of mind that comes with a retirement plan is unmatched. Knowing that you have a plan in place and that your money is working for you is a huge relief. You can dream about what you want to do in retirement and not worry about how you’re going to pay for it. Working with a financial planner to create a retirement plan is one of the best decisions you can make. They will help you figure out how much money you need to save and how to invest it so you can grow your wealth. They will also help you come up with a strategy for drawing down your savings in retirement so you don’t run out of money.
If you’re nearing retirement, it’s not too late to create a plan. It may take some extra effort on your part, but it’s well worth it. Having a solid retirement plan gives you the confidence to enjoy your golden years without worrying about money.
2. Boost your savings for retirement
It’s never too late to start saving for retirement. If you can start boosting your savings now, you’ll be in a much better position when it comes time to retire. One key way to save more for retirement is to make use of catch-up contributions, which the IRS offers for those 50 and older. This allows people in that age group to save an extra $6,500 per year in 401K’s, 403B’s, and other accounts (2022).
This catch-up contribution can be a huge help for those nearing retirement age, as it can provide them with much-needed additional savings. In addition to the extra $6,500 contribution limit, those 50 and older can also take advantage of other tax breaks that can help reduce their taxable income.
All of these strategies can add up to significant tax savings for those approaching retirement. By using catch-up contributions and other tax breaks, you can maximize your retirement savings and ensure that you have enough money to last throughout your golden years.
3. Review your debt situation
Debt can be a major obstacle when it comes to saving for retirement. If you’re carrying a lot of debt, now is the time to do something about it. Work on paying off your debts as quickly as possible so you can free up more money to save for retirement.
One way to get a handle on your debt is to create a budget. Figure out where your money is going each month and see where you can cut back. Do you have any unnecessary expenses that you can eliminate? Once you have a good understanding of your monthly expenses, you can start working on a plan to pay off your debts.
If you’re not sure where to start, there are plenty of resources available to help you get out of debt. There are numerous books, websites, and articles that offer advice on getting out of debt. You can also find helpful tips from financial advisors or credit counseling services.
The most important thing is to take action and start working towards becoming debt-free. It may seem like a daunting task, but it’s definitely possible. With some determination and hard work, you can get out of debt and start saving for retirement.
4. Invest in yourself
One of the best things you can do for your retirement is invest in yourself. Take courses and learn new skills that you have always had a passion for. For example, if you’ve always wanted to learn how to cook, sign up for cooking classes. This will not only give you a new hobby to enjoy in retirement, but it can also help you stay active and social.
Investing in yourself can also mean taking care of your health. Retirement is the perfect time to focus on your fitness and well-being. Start working out, eating healthy, and quitting any unhealthy habits that you may have. Doing this will not only improve your quality of life, but it will also help you stay independent and active in retirement.
Investing in yourself will not only make retirement more enjoyable, but it can also help you stay active and healthy.
5. Review your estate plan
Making a will and estate plan is one of the most important money moves you can make in your 50s. This is especially true if you have children or other dependents who will need to be taken care of after you’re gone.
A well-thought-out estate plan can ensure that your loved ones are taken care of and that your assets are distributed according to your wishes. It can also help reduce the tax burden on your estate.
If you don’t have an estate plan, now is the time to start putting one together. Talk to an attorney who specializes in estate planning and work out a plan that fits your needs.
Your estate plan is important, especially if you have children or other loved ones who will inherit your assets when you die. Make sure your will and other estate planning documents are up-to-date, and talk to your trusted accountant, financial advisor, or your estate planning lawyer if you have any questions. Reviewing your estate plan is a crucial money move to make in your 50s in order to set yourself up for a successful retirement.
Talk to a financial planner
If you want to make sure you’re on track for retirement, it’s a good idea to talk to a financial planner. If you would like to meet with us, schedule now!
Matt Ward, CFP®