This year, the last of the Baby Boomers turn sixty, making all fifty year olds now
the largest amount of Gen Xers of their demographic. It will be another six years before the
first Millennials reach fifty. So for the
time being, Gen Xers own "Fifty-Something."
Being a fifty-something can be a challenging time financially. From a career standpoint, individuals have likely reached as
high up the ladder as they are going to make it. Job changes can be risky as it may be a little
late to start over, and large
increases to annual salary are limited.
Unlike previous generations, lots of Gen Xers waited until later in life to
have kids. Many of the current fifty-somethings
still have kids in high school and college that they are having to pay
for. And with people living longer, they
might also be caring for their aging parents.
So, with all of these factors at play, here are some easy financial moves for the fifty year old
to focus on.
1. Find Out How Much You Could Sell Your Home For
Whether you need to move, want to move, or are just curious to know what
you can currently get for your home - there are multiple ways to see the value
of your home (without a real estate agent).
While the valuation is an estimate, the quickest way is to enter your
address at https://www.zillow.com/.
If you want a more concrete assessment and even a competitive cash offer
(with no agent) you can try https://www.offerpad.com/. It is completely free to check your
offer, plus they'll show you other potential selling options you may not
have thought of.
2. Get A Financial Advisor (This Is Not Just For Wealthy People)
There is no better time to plan for your financial future than now, and you should
not do it alone. A professional money
manager could do wonders for your financial and retirement future. There are plenty of affordable advisors but
try to stick with a CFP® (Certified Financial Planner) professional. They have been trained and tested to help you
create a plan designed to navigate investment options, maximize your Social
Security, help with tax planning, and protect your assets. Some might say they help you Breathe Easier®
about your finances.
Ask for a free consultation so you can get to know the advisor and see if
they are a right fit for you.
3. Check Your Life Insurance
No one wants to think about their death.
But if something happens to you, who will make the mortgage or rent
payments? How would your family live
with the loss of your income? Life
insurance is one of the smartest moves you can make to help protect your
family's financial future. Many fifty year olds bought some kind of term life insurance when their child was born, but
as those policies approach the end of their terms, it's important to re-evaluate what
the life insurance needs are for this next stage of life. The reality is: the longer you wait to get
life insurance, the more expensive it becomes, because prices go up as
you age. This is one of the topics you
can discuss when you meet with that financial planner.
4. Check Your Progress, Max Out Retirement Savings
Unfortunately,
you no longer have the luxury of time.
Make sure your retirement savings are on track. While every situation is different, a good
rule of thumb for fifty year olds would be to have four to six times annual
salary saved. You might need to up the
contributions. Make sure that you are taking advantage of the
catch-up provision for many retirement accounts and contributing the maximum.
5. Pay Down Debt
Ideally you
want to go into your retirement years with no debt. If you are only making the minimum payments
on your debt, look into increasing the monthly amount you are paying. Accelerating the payoff of your debt can not
only save you on interest paid, but being debt free is a huge emotional weight
removed from your life.
If you would like to receive more information on making smart
money moves for your future, be sure to contact us today!
References to asset protection or other guarantees are associated with fixed insurance products. No such language refers in any way to investment advice, investment advisory products, securities, or recommendations provided.
