5 Financial Decisions You Need To Make After 50

When you get to fifty years old, you suddenly realise you need to start making different financial decisions. What worked in the past might not still be relevant for the present. Age plays a significant role in the decisions you make. 

If you’re in this position, this post is here to help. It explores some of the financial decisions you need to make and what they mean. 

Decide To Max Out Contributions

If you haven’t done this already, ensure you max out your retirement contributions. The more you put in today, the more they’ll be worth when you finally get to retirement age. 

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Usually, your retirement accounts will have a financial limit attached to them. You want to get as close to this target as you can so ensure you have the best possible life in the future. 

Shift To A Glide Path

You also want to shift to a glide path if you can. Most people invest in 80% stocks and 20% bonds at age 40. However, you’ll want to move to a 60/40 split by age 50. 

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If you don’t do this, then there’s a higher risk you won’t get the return you want long-term. You may retire in a stock market dip, or in a bear market that lasts for years, not months, preventing you from living the lifestyle you want. 

Lock In Your Will

After 50, there’s more risk that comes with age. You never know if you’re about to get a medical condition that prevents you from doing what you want to do in life. 

Therefore, make sure you consider your will. If you have a solicitor, visit their website and see what options they offer. Usually, creating a will is straightforward, but you need to be explicit in your requests. Leaving it to chance will mean that the courts simply follow the intestacy laws once you’re gone, and that might not be what you want. 

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Get Long-Term Care Insurance

Another innovative way to use money after 50 is to get some sort of long-term care insurance. While you might have life insurance, it may not cover you for circumstances where you just need medical attention. 

Long-term care requirements can come about for all sorts of reasons. For example, you might get injured or you could suffer from a degenerative disease. If this happens, costs can grow quickly, and you can find yourself out of pocket. These policies protect you against these unwanted financial outcomes. 

Downsize 

Lastly, you’re going to want to decide if you’re going to downsize. This isn’t always something you have to do after age 50, but it is something you’ll need to keep in the back of your mind. 

Another way of thinking about it is considering the “right size” for your requirements. If you don’t need fifteen bedrooms because all your children have grown up and left home, then there’s no point in having the overhead. A couple of guests’ bedrooms is usually all you need to get by.