Once you reach your 50s, the focus on retirement really dominates your money strategies. So naturally, the advice that comes about for folks in their 50s is related to retirement.

# 1 – Put Your Focus on Retirement

At this stage in the game, you need to be considering what it is you will be doing in retirement. Do you have projects lined up that you’d like to do? Will you be traveling the majority of the time? Will you be moving to a retirement community? These kinds of questions should be concretely answered in your 50s because you’ll need to know where you’re going before you can get the map.

# 2 – Review Your Portfolio and Asset Allocation

Traditionally speaking, stocks have always been the best asset class to consistently outpace the eroding effects of inflation on purchasing power. But, when you’re in your 20s, 30s, and 40s, having stocks and taking losses isn’t as detrimental because you have plenty of time for the market to rebound. When you’re in your 50s, volatility in your portfolio can do some damage. At this point, you may want to consider safer investments, but as always, consult your financial advisor before making any decisions.

# 3 – Contribute More to Your 401(k) and IRAs

Even the government thinks you should be concentrating more on retirement at this point because once you’re over 50, they allow you to contribute more to 401(k)s and IRAs. Now, you’ll want to double check state law, some may require you to be 55 before you get the bump ups in contributions, but either way, contributing more will benefit you in retirement so make it a priority. Consider the recent news that social security is expected to run out much sooner then they had anticipated. You can only count on yourself to get you through the Golden Years.

# 4 – Ensure That You Have Adequate Cash Reserves

Even though you’re coming up on retirement, you still have long-term investments that you want to continue working for you as long as possible. Having to pull them out to cover an unexpected expense can seriously damage your portfolio and your retirement health overall. So, it’s best to consider things now and start saving cash for those events. Now, some people may feel that their investments are sufficient enough, if so fine. But, I’d still advise a visit with your financial planner to make sure. You can’t put a price tag on the peace of mind you’ll have knowing that you can make it through retirement without having to rely on anyone else.

# 5 – Evaluate Insurance Products to Protect Your Retirement Assets

Like # 4, this one aims to protect your long-term investments as much as possible. It’s no secret that during this time in our lives, medical issues may arise for various reasons. Long-term care products are easier and less expensive to buy when you’re still in good health, and they come in handy when they’re needed and don’t eat into your investments. Additionally, an annuity may make sense at this stage in your life because it does guarantee a payout for the rest of your life as long as you are solvent. Granted, the rate of return is likely to be a lot less than other investment types, but at this point it is about securing the nest egg you’ve built.

***Disclaimer*** I am not an investment advisor and can only give you the information I’ve personally had some experience with. Please, please check with a financial advisor before making changes to your portfolio, especially if those changes resulted from anything you may have read with Master Your Card!

Ok, so now that I’ve gotten the disclaimer out of the way, what other financial advise would you give for someone in their 50s and beyond? This is the last post in the series, so let’s get some really good discussion going!

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1. Financial Maxims: In Your 30s
2. Financial Maxims: In Your 40s
3. Financial Maxims: In Your 20s
4. What are your top Financial Concerns?
5. Buying Retirement with a Credit Card