Financial Planning in Your 50s - Adviser Investments

Financial Planning in Your 50s

Raising a family and building your career are enough to keep most people plenty busy—so much so that many don’t take financial planning seriously until their 50s, when they first see their retirement horizon approaching.

If you are in your 50s, here are five tips to make sure that you’re preparing properly for that next big financial milestone. (If you’re not in your 50s, check out our previous entries on tips for your 20s, 30s, 40s or your 60s.)

  1. Understand your spending. Most everyone knows (or can quickly calculate) how much they earn. Fewer people have a handle on what they’re spending—especially with inflation as high as it is. Knowing what it takes to maintain your lifestyle informs the rest of your financial plan. We’ve found that how a client spends is one of the most important factors in determining whether they will succeed or fail in reaching their retirement objectives. As a first step, take a look at our Budget Worksheet to figure out your monthly cash flow.
  2. Continue investing for the long haul. It’s tempting to think about making your portfolio more conservative as your 60s start coming into view, but keep in mind that you will likely need your nest egg to last another 20 to 30 years or more. While everyone’s risk comfort zone is different—and there’s never any need to take wild risks—growing your portfolio faster than inflation should still be your primary goal. Historically, that’s required an investment in stocks.
  3. Play catch-up. Turning 50 means you’re eligible to make catch-up contributions to your retirement accounts. If you turn 50 this calendar year, you can contribute up to $27,000 to your 401(k)—the $20,500 standard limit plus a catch-up contribution of up to $6,500—for 2022. Additionally, you can make catch-up contributions of $1,000 each to your health savings accounts (HSAs) and individual retirement accounts (IRAs). (And remember, you have until April 18, 2022, to make those HSA and IRA contributions for 2021.)
  4. Consider long-term care. It isn’t pleasant to think about, but the reality is that half of people turning 65 today will require long-term care. If you’d feel better having long-term care insurance, the best time to purchase a policy is typically in one’s late 50s, before premiums begin shooting higher.
  5. Clarify your retirement vision. Now’s a good time to start reflecting on what retirement means to you. Do you want to move somewhere warmer? Make time for volunteer work? Wear out your hammock or keep your hand in your profession through consulting? Don’t forget to include your spouse, partner or other loved ones in your planning.

These five tips apply to most anyone in their 50s. But it’s also important to recognize that your situation is unique. A financial plan that reflects your priorities is priceless—which is precisely why we offer this service to our wealth management clients at no extra cost. If you would like our help to make sure you or a loved one have checked the right boxes on a financial plan, please contact advisor. We’re here to help.

About Adviser Investments

Adviser is a full-service wealth management firm, offering investment managementfinancial and tax planningmanaged individual bond portfolios, and 401(k) advisory services. We’ve been helping individuals, trusts, institutions and foundations since 1994. Adviser Investments and its subsidiaries have over 5,000 clients across the country and over $8 billion in assets under management. Our portfolios encompass actively managed funds, ETFs, socially responsible investments and tactical asset allocation strategies, and we’re experts on Fidelity and Vanguard mutual funds. We take pride in being The Adviser You Can Talk To. To see a full list of our awards and recognitions, click here, and for more information, please visit or call 800-492-6868.

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