Your 50s can be a period of change. You may have grown children leaving the house, and you’re nearing retirement age. While you may have spent the previous two decades worrying about your kids and your parents, your focus may return to yourself as you age.
The biggest concern on the horizon is likely planning for retirement. You should make reviewing your 401(k) and any IRAs an annual priority and have a good idea of what your vision for your golden years looks like. With the right strategies, you can achieve those goals.
Responsible money management in your 50s can set you up to travel, enjoy your grandchildren, or enter an enjoyable second career. Learn more about what you should be doing to protect your money at this age.
Have the Tough Conversations With Your Family
Your mortality may be difficult to acknowledge. But in the interest of making things easier for your family should the unexpected occur, you need to address it. Talk to your family about your long-term care and estate planning preferences so they’ll be followed as you age. Be honest and address any concerns they may have about carrying out your wishes.
Think Before Co-Signing Loans for Anyone
You love your children, and you may be tempted to co-sign on their first home or car purchase. Try to resist that temptation. Should your kids be unable to make payments on their loans, or even default, you’ll be liable for the money, and your credit may take a hit.
Frequently Review Your Progress
You should have a general idea of where your retirement account(s) stand in your 50s. Make sure you’re maximizing any available employer matching for 401K contributions. Taking advantage of compound interest will ensure you squeeze the most out of your savings. Do everything you can to maximize what you’ve saved.
Make a Debt Repayment Plan
By the time you reach your 50s, you may have racked up more than your fair share of debt. You don’t want that lingering as you begin retirement and your income decreases. Reevaluate your debt repayment strategy and look into ways to consolidate your debt under lower interest rates. You may want to talk to a financial advisor if you have a lot to pay off.
Continue Monitoring Your Credit
When you hit age 50, you often become more confident than you were a few decades before. You no longer worry about making the silly financial mistakes that may have landed you in trouble in your 20s — but you shouldn’t get overly confident, either. Your credit score still matters, and you’ll be susceptible to fraud and identity theft no matter your age. Continue to check your score regularly and report any unauthorized activity.
By using these tips, you can get ready to enjoy retirement whenever you hit the magical age. For more financial tips by age, check out this infographic.