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Money tips for 50+s

You are ready for the final dash to the finish line when it comes to your finances. Here is what you’ll need to know in your 50s. Retirement planning is in full swing and the nest may even be empty for those in their fabulous 50s.

Even though some in this age group may find fewer constraints on their hip pockets, appropriate financial planning is still the key to secure your future.

Retirement

Planning and savings is the key to setting up a quality lifestyle after calling it quits in the job department.

Saving for retirement is the major goal of people in this age group. They start to look at superannuation more closely and are looking at options like to invest in property and other diversified investment options that they are able to have more control over.

They are also looking at salary sacrifice up to their age base limit. Salary sacrificing could be just the super-pumping fuel you are looking for. With other strategies in the right mix, salary sacrifice can be even more powerful in boosting your super and pay less tax.

Review your insurance

Keeping an eye on your insurance cover is the best way to make sure you and your family is protected if something unexpected were to happen.

Your life situation changes, so you will need to review your cover. Make sure you check your beneficiaries and consider updating them to keep them relevant.

Insurance can be paid through most super funds and from companies outside super that provide outstanding cover. We can help work out what type of insurance you should have, for what amount, and where to source it.

Risk

Check your financial plan to make sure your investments are still on track to meet your goals. Over time your goals or attitude to risk will have changed and your investment strategy will need to change as well.

Your investment objectives will determine your investment timeframe. Generally, we say that the longer your investment timeframe, the more aggressive you can afford to be. Many in their 50s have built up equity in their property or investment portfolio and can afford to consider borrowing to invest. A big disclaimer comes in here as if you are thinking about borrowing against their equity should seek advice from us before embarking on this path.

Gearing can result in increased returns in a rising market but it may also lead to greater losses in a falling market. You really need to know what you are doing here. You need to strike a comfortable balance between the level of risk you are prepared to accept and your desired returns.

Will & Estate Plan

Data shows that just over 51 % of Australians don’t have a valid Will. “Haven’t got around to it”, was the reason cited by 48 per cent of those aged under 50 and 55 per cent of those aged 50 and older. But it gets harder to ignore this somewhat squeamish issue as you get older.

Having your affairs in order ensures your wishes after death are followed and your family is spared the pain of conflict and confusion. Having a valid Will can help make sure your estate is managed and distributed how you intended.

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