This is usually the time where conservative investors want to take a step back and pool their savings into more secure investment options. The fallout of the subprime mortgage crash in 2007/2008 saw millions who invested their pensions in the stock markets lose substantial sums of money. But life after fifty doesn’t mean sticking with fixed deposits and money markets at the local bank.
Use Bonuses to Save Towards the Future
Those who are still employed in their fifties run the temptation of using bonuses to go on lavish vacations or splurge on treats. During this phase in life, it’s important to rather take a step back and put every cent into strengthening investments and savings. The great thing about using a bonus payment for this is that it doesn’t affect emergency savings. It is also a chunk of change that can endure a little bit of risk, depending on the portfolio or fund selection.
Deal With Professionals for the Best Advice
Those who have a solid background in the finance industry may not have control over every aspect of an investment. However, years of training and expertise often allow them to make the necessary recommendations to their clients to mitigate their risk. According to industry professional Jason Sugarman, some of the most important factors include good leadership and a healthy view of success. Other important factors include work/life balance and the ability to deal with stress.
Use Tax Incentives and Allowances to Your Advantage
The 401(k) is just one of the investment vehicles consumers can use to save as much as they can and save a bit on their taxes. Although there are limits as to how much can be saved in the 401(k) and make the most of tax advantages, other savings vehicles might hold a few surprises. Some fixed deposit and limited access savings accounts also offer tax benefits and the idea is to find the best combinations. Some of these accounts are regulated and only allow one per customer.
During their fifties, consumers are tasked with the mammoth task to tie up all the loose ends before that last working day. Those who fear they may not have enough saved during this time to provide for their retirement can perhaps take a look at alternative sources of income. Investments into properties for rental income and even side hustles can provide a bit more financial security during those golden years.