Turning 50 is a milestone for many reasons. You’re likely in your peak earning years and no longer have kids at home. You’re paying down debt, and your wealth is higher than it was a decade earlier.
Changing circumstances means changing strategies. Here are some financial goals to consider in your 50s:
- Run projections. If you haven’t done any type of retirement projections, start to play around with online calculators that help you figure out how much income you might have in retirement given your current portfolio. Keep in mind that most online retirement calculators don’t accurately account for taxes. This can make a big difference in the results.
- Create a retirement budget. Getting a handle on your upcoming retirement budget helps you to make smart choices about the retirement lifestyle you want. You may find there are trade-offs you’re willing to make that might enable you to retire earlier, travel more in retirement, or have more money for fun and hobbies.
- Consider long-term care insurance. The great unknown of retirement living is medical costs. If you remain healthy, no problem. But any chronic condition can turn into an ongoing expense that greatly restricts your lifestyle. Look into long-term care insurance—many plans are only available to people in their 50s because older retirees no longer qualify to buy or simply can’t afford long-term insurance.
Finally, here’s your bonus health tip for your 50s:
Stay active, physically and mentally. Get at least 30 to 60 minutes of physical activity every day, including aerobic exercise for your heart health and weight-bearing exercises to reduce the risk of osteoporosis. Studies show that challenging your mind is also important to improve overall health as well as brain function. So, take up a new hobby, join a book club, and find ways to keep your mind and body moving!
Here’s to a healthy and prosperous life!