The Best Money Moves to Take During Your 50s – Know How to Build Wealth

Soon after your 40s, you step into your midlife or the 50s and this life is replete with opportunities and challenges at the same time. You may be still paying for college fees but the other costs that come up with raising your kids should all be done away with. Now that you’re older, you’re closer to losing your job and this is also going to be the peak years for earning money.

So, when you’re at your peak earning years, don’t you think you should also keep aside most? As per a study found by Hearts & Wallets, 40% of the savers who were successful in building nest eggs which were equal to their 10 times pay did it by saving 15% or more than that during the last 10 years of their lives. 

Here are few of the best money moves to make during your 50s.

Don’t consider your bonus as everything

Even a decade back, your bonus was enough to let you qualify for buying a house. But times have changed and now you have to use the bonus to save for your near future. 

Reports reveal that majority of the burst-savers keep aside any extra income that they make apart from their salary like raises, bonuses or even the banner commissions.

Keep your age in mind

You’re in your 50s! The very year you celebrate your 50th birthday, you can begin to make matched contributions to your workplace retirement accounts. How about an additional $6000 towards your 401(k) and one more extra $1000 towards your IRA?

Take a close look at your future 

Now that you’re in your 50s, don’t let your energy drain out. Visualize how your life is going to be 20 or 30 years later. The Columbia University researchers find that the people who are closely connected to their future are willing to eagerly wait for obtaining the rewards of their later life. Try and design an aged picture to see whether or not you look satisfied. 

Don’t raid your 401(k)

There might arise a time when your college costs are high enough and this is when you feel that your retirement fund could be raided for help. According to what J.P Morgan says, from the tender age of 25, save at least 8% and if you do this, you could earn $1.3 million by the age of 65. 

Later on, if you take out a loan amount of $10,000 at the age of 33 for buying a home, a loan of $10,000 at the age of 50 for paying off college costs and you withdraw $10,000 when you’re 62, this amount will drop down to $930,000.

Focus on your investment fees

Did you know that more than 65% of the investors don’t have any idea on how their stock trading advisers are paid. In fact, there are many who think that the advice is totally free. It can be tough to figure it out but don’t go without determining the fee of the adviser.

CFDs

Apart from the lure of making huge amounts of money, traders usually choose to trade CFDs because they are settled in the form of cash instead of physical goods or other securities. Let’s go through the few mistakes that you should avoid committing while trading CFDs.

Therefore, now that you know the different tips and advices to follow when you reach the age of 50, you should take immediate steps to make the worthiest investment to build wealth for your future.