Five Retirement Tips for Individuals in Their 50s
Are you turning 50 years old in 2020? If so, it is time to get serious about your retirement plans. Hopefully, you already have a retirement plan in place and you are actively preparing for retirement. However, even if you have a retirement plan in place, you can benefit from ramping up your efforts to prepare for retirement. Investing in your future becomes even more important in your 50s because you are closer to retirement age. You do not have as long to prepare as you did 10 or 20 years ago.
Below are five tips that can help you increase your retirement savings, even if you are now on a tighter timeline.
1. Maximize Your Retirement Savings
People in their 50s can increase their tax-advantaged retirement savings by taking advantage of several catch up options available just for people over 50. Max out contributions to your 401(k) and IRAs. If you do not have a Roth IRA, open one now to take advantage of additional post-tax savings for retirement available to individuals over 50.
2. Eliminate Credit Card Debts
Credit card debts severely restrict your income going into your retirement years. During your 50s, focus on eliminating all credit card debt and living without credit cards. As you enter retirement, you want to have enough income to pay for your living expenses and discretionary spending without using credit cards. Learning to live within your means now can help you before and during retirement.
3. Pay Off Your Mortgage
Mortgage debt is another problem for many retirees. Paying off your mortgage before retirement can create thousands of dollars in additional income during retirement. If you cannot afford to pay off your mortgage, you might want to consider downsizing before retirement. As your children move out, you may need less space. Downsizing can also reduce other expenses, which gives you additional income during retirement.
4. Invest in a Health Savings Account
If you qualify for a health savings account, you can invest pre-tax dollars in a savings account that grows tax-free. The money is not subject to taxes provided that the funds are used for qualified medical expenses. As you age, your health care costs may increase. Having a source of funds to pay these costs reduces the need to use income or other resources during retirement for health care expenses.
5. Consult an Expert
There are several reasons why you want to consult a financial professional regarding your retirement plans. First, working with a financial professional gives you access to information about tools and resources that can increase your retirement savings. You also receive expert advice regarding what investment options give you the best chance of achieving your financial goals and retirement goals. Also, working with a financial planner creates a level of accountability. Having a neutral party who encourages you to take the steps necessary to secure your future can be what you need to push yourself to save for retirement.
The Castle Wealth Group Offers Comprehensive Financial Planning Services
The financial professionals of Castle Wealth Group care about you and your family. We want to help you develop a comprehensive financial plan that will secure the income and resources you and your family need now and in the future. Our financial professionals help you develop a plan that addresses all aspects of your financial wellbeing, including estate planning, retirement planning, long-term care planning, and asset protection.
Let us help you tailor a plan that is right for you, regardless of your current budget, financial situation, or financial goals. We can help you choose options that are right for you and help you manage your plan to reflect the changes in your life and your family.
If you have questions about financial planning or want to schedule an appointment, call (844) 885-4200 to speak with a knowledgeable representative.
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