If you’re a working member of society who has reached the age of 50 (or beyond), then thinking about retirement isn’t that far-fetched anymore.
Typically, retirement comes calling around the age of 65, or whenever we have enough money saved up to do so comfortably. But there are other factors which come into play as well when thinking about retirement, such as:
- Do I Have A Retirement Plan?
- What Will I Do After I Retire?
- Do I Even Want To Retire?
- What If I Want To Retire Early?
All of these and more are questions that you should ponder, deliberate, and answer when you’re in your 50’s. Unless you plan on working until you’re well past the age of 65, possibly even into your 70’s or until you drop on the floor of your company’s building, then it’s time to actually start taking the proper steps toward retirement.
That means assessing your savings, and making smart moves with your money so that you can live a comfortable life when you’re done working. That’s the way it should be, after all.
In this blog post, we’ll be helping you plan for a financially secure and fruitful future with a few retirement hacks for people in their 50’s. Remember, it’s better to start saving as early as possible. But if you haven’t saved much of anything, well then it’s better to start late than never.
Make A Retirement Plan
This is the first “retirement hack,” aimed at answering that very first question from above. In your own personal retirement plan, you should consider a few things such as: the age at which you want to retire, the date which you want to retire (all the way down to the month and day), how you will pay for your expenses after your retire, what you will do for a hobby after you retire, and how you will be covered insurance-wise after you retire.
All of these and more are crucial aspects of your retirement, but perhaps none more so than the financial aspect. It’s imperative that you have all of your finances in place, assessing securities like your employer-sponsored 401K plan, your personal IRA accounts, or even your fixed income fund or annuities.
Once you hit 50, by the way, the IRS affords you the opportunity to make what is called “catch-up contributions.” In this instance, the maximum contribution limit on your 401K and IRA rises by about $1,000 for each account, allowing you to save even more from now up until you retire. You’d be wise to take advantage of that perk once you hit 50.
Planning for retirement isn’t always easy, but setting aside as much money as you can, especially now that you’re in your 50’s, will pay off big time in the long run.
Downsize And Budget
Now that you’re in your 50’s, chances are your kids are out of the house and it’s just you and your spouse or partner left in the nest. At this point, it’s likely a good time to consider a downsize, which can help you save hundreds, if not thousands, of dollars on your monthly mortgage payments (if you still have them, that is). This can help you allocate more of your money toward saving for retirement, when the income won’t be as regular and the expenses can pile up.
The next tip is to make a budget and stick to that plan, making sure you don’t get loose with your wallet and make unnecessary purchases. The money you save on those types of splurges can instead go toward your retirement account, or even to establishing an emergency just-in-case fund to cover things like unexpected medical expenses.
At this point in your life, you don’t need that flashy car, or new wrist watch. It’s better to save those indulgences for when you retire, when you know you’ll be safe and secure financially.
Wait Before Taking Social Security
Sure, you can start receiving your monthly Social Security benefits when you reach the age of 62. But if you’ve planned well enough, and are still taking significant steps toward healthy savings, then why do it? Taking your Social Security right away might be unavoidable in some instances, but the benefits of waiting are plentiful if you have a fully funded retirement plan. In fact, some experts estimate that if you work for a few years longer, or simply wait until at least age 66 to start drawing from Social Security, you can increase your monthly payments by more than one-third.
Find A Hobby
Now that retirement is staring you right in the face, it’s time to start thinking about what you’re going to do when you’re not working all day. Are you a fisherman (or woman)? Are you a crafter? Are you a gardener? A baker? Heck, maybe you even want to try out your luck as a business owner. Whatever your preference, it’s time to start thinking about these things so that you aren’t driven mad with boredom in retirement.
Invest In Fixed Income Funds
Hey, here’s another question to ponder: how are you going to replace your income when you retire? Social Security is nice, yes, but it’s not likely to be enough. Your retirement fund should be well-stocked, but it can run out in a hurry if you’re not careful.
Wouldn’t it be nice if there was a way to receive stable, consistent monthly income throughout retirement? Well, there is. It’s called the Fixed Income Fund, and it’s much more valuable and worthwhile than other fixed annuity products. The Fixed Income Fund can be a short investment or a lifetime annuity which provides you with monthly cash payments for the rest of your life.
All it takes is a principal investment, and the fund goes right to work on buying mortgage and trust deed loans which generate high and reliable interest payments each month. Our high fixed annuity rates soar past those offered by brokerage firms, because our investment is more simple, efficient, and doesn’t come with any additional management or transaction fees.
If you’re in your 50’s, it’s time to seriously start thinking about retirement. If you’re thinking about retirement, it’s time to start thinking about the Fixed Income Fund. Contact Tactical Wealth today to learn more.