For most people, turning fifty marks a huge milestone. This is when many people are sending the kids off to college and starting to look forward to enjoying an empty nest. Or they are winding down in their careers with a keen eye towards the future.
As you embark on this important decade in life, now is a great time to start planning for your future by saving for retirement. While right now might not seem like the most urgent time to get underway, there are many benefits to doing so. Here are five pieces of advice you need to consider while investing for retirement in your fifties.
1. Retirement Planning Now is Easier Than You Might Think
To put it simply, now is the best time to start planning for retirement while your monthly expenses are still low. With the kids out of the house and your income at a pretty stable level, finding the ability to stash away a few extra dollars each month is probably a lot easier than you might think. Plus, you’re likely still in pretty good health and don’t have added medical bills that could take away from your future savings.
2. Save for Retirement Before Your Children’s College Needs
After the birth of your first child, you likely started saving for their college education. However, a lot of life may have happened between then and now that they’ve graduated high school. They might qualify for scholarships or decide to not even further their education at all. In contrast, you’re still going to want to retire. So, don’t feel bad about working on your savings first before finding extras for an educational fund.
3. Don’t Borrow Against Your 401K
Many people think that borrowing against a 401K or other retirement fund is a good idea later in life, which is why they contribute to these accounts for decades. Instead, put this idea out of your mind as a possibility. In a lot of cases, the loan terms aren’t nearly as flexible as other options and the whole amount could come due if you suddenly had to leave your job. Instead, keep your 401K exactly as it is meant: savings for retirement.
4. Consider Having a Health Savings Account (HSA)
If you’re wanting to save for retirement, consider investing in a health savings account (HSA). These are like having a flexible spending account (FSA) that can be used for healthcare deductibles, medical bills, and other necessary expenses. The only difference is that they never lose their value in a use it or lose it scenario. That means you could easily enjoy the tax benefits of this account now while setting aside money for health needs as you get older.
5. Have Flexible and Firm Plans for Retirement
If you’re like most people, you probably just read that heading and wondered what in the world we’re talking about. Essentially, this means being both flexible in the fact that your goals can change, but firm in that you have something in the works for retirement while in your fifties. Likewise, an asset protection attorney can help you come up with solid plans to ensure big items like your home and any businesses you own are secured in the event of your death.
Retirement Planning with Voyageur Advisory Group
The truth of the matter is investing for retirement is something you should work on at any age. However, if you’re just starting in your fifties, the five tips we’ve mentioned here will help you get a jumpstart on where you need to be in the next couple decades.
Are you looking for an advisor in Toledo for investing in retirement? Voyager Advisory Group is here to help. Please contact us today to schedule an appointment.