5 Smart Money Moves to make by age 50
Mike about Money | 5 Smart Money Moves
Procrastinating on money matters is common, but as one ages, it's important to take control of personal finance matters. Below are five smart financial moves to help keep the next 50 years financially sound:
Speed Up Paying Down Debt
You don't want to be dealing with mounds of debt as you work those last few years before retiring. Calculate your current debt load and start paying off larger debts as soon as you can. This includes any car loans, mortgages, large credit card balances and personal loans that you've been carrying around for a while.
Look At Your Life Insurance
If you don't have life insurance, or think you may be under-insured, now is a good time to consider your and your family's life insurance needs. The American Council of Life Insurers recommends having life insurance coverage of seven to 10 times your salary.
Lock In Long-Term Care Coverage
Buying long-term care while you're healthy and locking in your insurability is way easier at age 50 than, say, age 75. Waiting to purchase long-term care insurance can mean substantially higher premiums.
Better Diversify Your Portfolio
At this phase of your life, you don't want financial mistakes - and particularly investment blunders - to derail your retirement game plan. So make sure you're not investing all of your savings in just a single account or investment type. After age 50, you also want to reap the greatest possible return from your investments, as these may be your highest income-earning years and the time when you have the most potential to sock away money.
Set Up A Will Or A Trust. Now!
It's time to create or update your last will and testament. Here are three options: pay a lawyer to create a will, use online software such as that offered at places like Legalzoom.com or Nolo.com, or use store-bought forms that contain preprinted wills.
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