5 Smart Financial Moves to Make by Age 50
It’s never too early to take control of your finances and start making smart money moves before you cross the bridge into fifty. Whether it’s retirement savings or debt obligations, the right choices now can save you time and trouble farther down the road, so consider these five financial moves worth making.
1. Plan Long Term
Saving for a rainy day or budgeting to accommodate a big-item purchase down the road is just smart money management. Planning long term to control your finances early in life, and reassessing when necessary, helps you keep control as time goes by.
2. Diversify Your Portfolio
Some experts say that as you age, there’s a tendency to tolerate less risk surrounding your financial portfolio. Others disagree. Most find common ground in the understanding that diversifying your portfolio and investing wisely before fifty ensures greater returns in the long run. Try leaning toward equities rather than fixed-income investments if you’re feeling flexible.
3. Accelerate Retirement Savings
Hand-in-hand with diversifying your portfolio is accelerating your retirement savings, with a focus on meeting your retirement goals sooner rather than later. Consider long-term living expenses before spending frivolously on short-term gratification.
4. Reduce Debt
Debt reduction is a financial goal regardless of age, but as you near retirement, it becomes liberating to realize that debt obligations aren’t holding you back. It’s important to calculate overall debt and begin paying off larger debts sooner rather than later.
5. Consider Life Insurance
As morbid as it may be, it’s fiscally responsible to prepare for the inevitable. With life insurance coverage recommended at ten times your salary, it’s best to plan ahead and take into consideration any outstanding debts as well as money you’d like to leave to family in the event of your passing.
Nestle the Nest Egg
Above all else, when you have a nest egg in the form of a comfortable savings emergency fund, nothing can take you by surprise. Whenever possible, be sure to set something aside “just in case.”
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