Financial planning is important for every adult. But when you're over 50 and staring retirement in the eyes, it's even more vital."Money management in this decade isn't optional," Houston says. With retirement looming, especially in what she calls "today’s turbulent economic times," now is "the time to get intentional, strategic and focused so you can secure yourself financially," she explains.
How Much Does the Average 50-Year-Old Have in the Bank?
Houston says that, for many, "It can feel like you've fallen behind on your savings" as you begin to approach retirement age. So, how much money should you have in your bank accounts?By age 50, she recommends a savings accumulation of around five to six times your annual salary. "In reality, though, the median savings for people in their 50s is often... far below where it should be," she adds.Related: 9 Subtle Signs of ‘Stealth Wealth’ That Are Easy To Miss, According To Finance Experts
The #1 Money Mistake a Financial Strategist Is Begging People Over 50 To Stop Making
While it can sometimes be good to be on the conservative side in terms of money, you shouldn't be too conservative in terms of investing if you're over 50."Many people over 50 struggle with investing because they... become too conservative and park their money in cash that can't outpace inflation," Houston says. But if you do end up investing, make sure to be smart about where you put your money."Portfolios are often poorly diversified, with too much money invested in one asset or with cash sitting idle in a low-interest savings account," she notes.
2. Being too aggressive
On the flip side, Houston cautions against being overly aggressive with an investment strategy this close to retirement. She warns against "chasing risky returns to make up for lost time" or making "emotional decisions during market swings."
4 Financial Strategies To Implement Over 50
1. Maximize contributions
"At 50, you can be eligible for 'catch-up' contributions [to retirement funds], which let you boost savings in the critical years before retirement," Houston says.
Related: The 8 Best Side Hustles for Women Over 60, According to Career Coaches
3. Increase income
4. Create a spending plan
Houston says it's important to know what you'll need to accommodate your lifestyle. "Map out how your retirement withdrawals will work so you don't overspend early in retirement," she says. That way, you "can ensure your money lasts."Up Next:
Related: Finance Experts Are Begging People Over 50 To Start Doing This ASAP if They're Not Already
Source:
Melissa Houston, CPA, founder of She Means Profit and author of Cash Confident: An Entrepreneur's Guide to Creating a Profitable Business. Find her on Instagram @melissahoustoncpa.Hence then, the article about a financial strategist is begging people over 50 to stop making this money mistake was published today ( ) and is available on Parade ( Saudi Arabia ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( A Financial Strategist Is Begging People Over 50 To Stop Making This Money Mistake )
Also on site :
- ‘The Princess Bride’ Star Cary Elwes Shares Tribute to Rob Reiner: ‘From That Very First Meeting I Fell In Love With Him’
- A Shockingly Recent Year Just Cracked the Top 5 of Rock's Most Legendary Years
- SFM Announcement: Kessler Topaz Meltzer & Check, LLP Encourages Sprouts Farmers Market, Inc. (SFM) Investors to Contact the Firm About Securities Fraud Class Action Lawsuit