5 Money Mistakes You Should Avoid in your 50s

Plan for a Happy Retirement by Avoiding these Money Mistakes in your 50s

Your 50s are undeniably among the most critical years of your life as far as your finances are concerned. You know how much you’ve worked hard to enjoy your present lifestyle and probably, you’re already imagining what your future retirement will be like.

To boost your chances of enjoying a happy retirement, avoid committing these common financial mistakes once you hit your 50s:

  1. Not diversifying – It’s not actually a good idea to focus on just a single investment platform. You need to diversify, meaning, you should own a wide portfolio of stocks and growth assets. By diversifying your investments, you can gain bigger and more satisfactory returns over time.
  2. Relying on government pension – Don’t be complacent during your 50s just because you’re expecting to receive a government pension once you retire. Note that while the age pension is capable of providing you enough for your basic needs, it will be impossible to live comfortably if you just solely rely on it.

What you have to do, instead, is to have full control over your financial future by ensuring that you have enough savings and investments once the time to retire comes. Determine the lifestyle you plan to enjoy during your retirement so you can begin working towards achieving it.

  1. Settling your mortgage prior to other loans – Many of those who are nearing retirement have a goal of settling their home mortgage prior to retiring. What they may not realize is the fact that their other outstanding loans and debts, such as student and personal loans and credit card obligations, have higher interest rates than a home mortgage.

While the required monthly payment for your home mortgage is larger compared to other loans, note that its interest is still lower. With that in mind, focus on settling your other loans first and ensure that you’re already debt-free once you reach 60.

  1. Putting your children’s education ahead of your own retirement – You may want to help your kids financially by paying for their education but make sure to also set aside something for your future. Put enough on your own retirement. If possible, prioritize it so you won’t have a hard time financially once you decide to retire.
  2. Not prioritizing your health – Put more attention to your health. Note that as you age, medical expenses will also start growing exponentially. That’s why you have to invest in a good diet plan and do some workouts. By taking care of your health, you can minimize your medical bills in the future since you can expect to stay physically fit and healthy for a long time.

Once you hit 50, you’re stepping on your last full working decade. It’s actually possible to delay your retirement if you still want to put some order to your finances but it would be best to focus on settling all your debts and contributing to your retirement funds. Note that once you stop working, it’s your retirement account that will help you live comfortably so you need to prioritize it.

Reply