Congratulations on your completion of 50 golden years of your life! Well, you are in your 50s. This time is crucial because you can’t take risks with your money and you need to prepare yourself for retirement as well.

How well you can handle your money at this stage in your life will determine your financial future. So, make perfect financial moves without any loopholes.

Best money moves you can make in your 50s

The 50s is the prime time to look back at your finances because you’re nearing your retirement. Also, you don’t have much time left to do experiment with your money. As a result, you need to make some smart money moves for a secure financial future. Some of them are as follows:

#1 Save money

You are in your 50s. The truth is that you don’t have enough time left for your retirement days. You need to arrange your finances properly so that you don’t face financial adversities later in life. So, what should you do? You should save money properly. ‘Saving money’ should be your first concern. People are also baffled with taking care of aging parents, paying mortgage payments, paying college tuition fees for their kids, and so on. No matter what your situation is, make sure you have enough money for a secure financial future.

#2 Take advantage of your 401(k)

Employees in their 50s can contribute more into their 401(k) account. This amount is more than they could have saved before turning 50. You’re likely to invest $6,000 of your earnings against $5,000 of your earnings towards your retirement account. This extra money will help you in the long-run as it adds up over the year.

Read more - 401k and IRA major amendments in 2016 - Rules for retirement accounts

#3 Recognize your financial position

It is not possible for you to work lifelong. You’ve hit the 50s age bar, and it’s high time to make arrangements for your retirement. For that, you need to figure out your financial position first. Your retirement will be in good shape if you don’t pile up new debts and make sure your kids are doing financially well.

#4 Pay off debt

This is the best time to pay off debts, especially, non-deductible debts such as car loans, credit cards, student or personal loans, etc. Make sure you pay off the highest-interest-rate debt first and then the next highest, and so on. Pay off your mortgage also. Avoid accumulating any additional debt for a debt-free retirement.

Read more - Paid off debt? 8 Brilliant ways to use the money you saved

#5 Invest in disability insurance

According to the Social Security Administration, “nearly one-third of workers in the workforce eventually become disabled before retiring.”

A disability insurance will help you fight against any odd situation in life. Your employer’s disability plans will provide you with just 60% of your income, which will last only for two to five years. On the other hand, a supplemental insurance policy gives you up to 80% of your current income that lasts until you reach retirement. It’s time to invest your money in a disability insurance policy to protect yourself against any long-term illness.

#6 Reduce tax refund

The 50s is the highest-earning years for most of you. This is the time to focus on tax-efficient investing and minimizing tax refund. Prioritize structuring assets and investments in such a way so that, you don’t lose your returns on taxes. Investors in a 39.6% tax bracket are in a more advantageous position than those in a 15% tax bracket. Make sure your investments don’t lose more of their returns to taxes.

Read more - Tax laws 2016: Are you aware of these changes?

#7 Think twice before taking risks

Whether or not you will risk your dollars into investments depends totally upon your financial health. You can invest in items such as gold, art collections, rental properties, and so on. Make a shift to safer investments like bonds from riskier investments like stocks. But, before taking any risk, analyze your financial situation well. Prepare yourself to deal with any financial loss.

#8 Take help from a professional

The U.S. tax laws are complicated and impassable for normal investors. So, get professional help to deal with the tax laws efficiently. By now, you’ve gathered enough assets and financial complexities, which calls for a professional help.

#9 Other financial moves to make in your 50’s

  1. Create an additional source of income
  2. Work for few more years and delay your retirement
  3. Set new financial goals and reassess them frequently
  4. Lead a frugal life as much as possible
  5. Wait until you are 65 years old to draw your Social Security benefits
  6. Check your credit report regularly to avoid identity theft
  7. Give less financial support to grown up children
  8. Create an emergency fund with three to six months of expenses
  9. Avoid taking out a 401(k) loan unless you really need it
  10. Create a will and update it at regular intervals
  11. Keep yourself financially educated and up-to-date

There are just a few years left in your retirement. You may not be able to work after you retire. The 50s age group is the best time to prepare your investments, savings, and finances properly so that you can lead a peaceful retired life.

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