Time to Play Catch Up: Investing at age 50 and Beyond

If money makes the world go around it’s probably because we talk about it so darn much. But for all those who are talking, how many are doing? Studies have shown that roughly 6 out of 10 individuals have never tried to calculate what they need in retirement. And that’s how 60% find ourselves celebrating 50th Birthdays without a plan for the future. Now don’t be sad. Just because you haven’t done the calculations doesn’t mean you’re sunk.

Here’s some steps to get you started.

#1 Set Goals

Actually there is a step before #1, and that’s looking at what you’ve done already. Chances are that you’ve already been socking away some funds. You may for example, have a 401(k) that you contribute to regularly. What else have you got? How about an IRA?

Your strategy should be to first take complete advantage of your 401(k). Work yourself up to the maximum contribution. If you’re lucky and you’ve still got an employer that matches funds, then you’ve got yourself a sweet bonus.

Once you’ve maxed out the 401(k) or whenever you find yourself with a nice amount of extra cash, open an IRA. Okay, now back to setting your goals.

According to a recent study by the Fidelity Research Institute, people who are 55 or older, are on track to have  55% of their income during retirement through personal savings, Social Security and pension income, That means they’ll have to live on 45% less cash each month once they retire.

Is that enough? Well that depends on your lifestyle. Some people believe that they will need less income when they retire since their lifestyle changes. However, 39% of current retirees said that their expenses actually increased during retirement. So be careful about setting the bar too low.

#2 Get an Outside Opinion

Seeking professional advice is not a weakness. And, fortunately for Coors Credit Union members there is expert advice right in-house. Our Investment and Retirement Center offers no-cost, no-obligation consultations. This is a great way to try them out. Consulting an adviser can help you see things that you might have otherwise missed. They can also help you review all your investment options.

#3 Play Catch Up

Ugh, the dreaded catch-up factor! Fortunately, the US Government has some strategies in place that can help you. If you’re still working and over 50, you can put more money into tax-sheltered retirement accounts such as 401(k)s and IRA than those younger people. Check the latest contribution limits with the IRS for IRAs and 401(k)s.

These are the essential steps anyone 50 and better should explore in preparing retirement wealth. We hope this will get you started and encourage you to explore more wealth building strategies.


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