YOUR MONEY
CRITICAL MONEY MOVES TO MAKE IN YOUR 50S FOR A SECURE RETIREMENT
By Justin Branstetter Finance Columnist
It seemed like just yesterday you were leaving home for the first time headed into the great unknown of life . Today you are in your 50s and it seems like you just got things figured out and headed in the right direction and you are feeling like you don ’ t have enough time left until you are of retiring age . Don ’ t worry ! You still have at least 15 years to save for the perfect retirement . As with anything successful , the first step is a good plan . Here are the top three moves you can make now to get started .
To begin , take a proper look at where you are currently and how you envision your “ golden years .” Spend some time gathering all of your financial information ; your investments , savings , and all other assets as well as debts and bills . This should give you an accurate detail of where you are and where you need to be to fulfill your retirement goals and also it will let you know where you need to close gaps in your financial life .
The second thing you need to do is to start “ cutting the fat .” Take a hard look at what you can do without to help ramp up your savings . This is
Branstetter a good time to maximize any employer matches at your workplace or take advantage of any IRS rules that allow you to “ catch up ” on any IRA or work place retirement plan contributions . The IRS has many advantages for people over 50 to pump more money into their retirement savings like an additional $ 6,500 a year to contribute to your workplace retirement plan or an extra $ 1,000 a year to put in your annual IRA contributions . The earlier you start putting extra in , the earlier the magic of compound interest can work for you .
Remember , you have around 15 years until you retire so you don ’ t have to take all of your investments out of growth stocks . Playing it safe is a natural feeling at this stage in our lives , you want to protect what you have accumulated so far , but try to stay ahead of inflation or risk losing spending power in your retirement . Be sure to remember that retirement can be up to 20 or 30 years , so that ’ s more than enough time to recover losses if there is a downturn in the market .
Finally , decide what debt is good debt and what debt is bad . In the past , people would attempt to retire completely debt free , including paying off their mortgage before eating their retirement cake . Paying off your mortgage is still a great idea , but with house prices at a premium it is often difficult to do . With low interest rates on mortgages putting that money into a tax-deferred retirement account can actually give you more bang for your buck in the long run due to the tax savings . It also allows you to use the mortgage interest for your taxes at the end of the year . Paying your mortgage off does often fulfill many peoples long term dream of owning their own home so that cannot be discounted .
Hopefully this gives you a good starting point to start securing your retirement in the not-so-distant future . If you have any questions or concerns , be sure to find a reputable financial advisor . Good luck !
• Justin Branstetter is vice president of Meridian Mutual Federal Credit Union . You may contact him at jbranstetter @ meridianmutualfcu . com
34 • TIMELESS MERIDIAN