ARTICLES

The  50s are truly said to be the golden years of life. You are at the most productive stage of your life. You are a lot more mature and you have identified the exact path your life is on. This is therefore a very good phase for investments. With a lot of clarity around, you can plan your investments effectively and maximize the returns to meet your financial milestones. 

Saving for your kids

By the time you are in your 40s and or 50s, your kids are slightly older and they also know what they want to pursue in life. Invest for them so that their higher education costs are covered. If their education expenses are already taken care of, invest for their future so that they have a minimal corpus at their disposal when they start earning. This way your kids would have a slight headstart right from the very beginning. This is an important overhead to focus on at this stage in life.

Step up your retirement planning 

Your retirement may be closer than you imagined. With a broader look at your current lifestyle and also your health status, step up on retirement planning. You may just have a few years left to save before you retire, so prioritize that fund to ensure you remain financially independent forever.

Step up your SIPs, opt for a pension plan, or whatever you think is necessary to ensure that your post-retirement dreams are not compromised because of inflation and low rate of interest rates!

Get adequate health insurance

It is quite common for women to develop certain disorders as they age. The common illnesses include osteoporosis, hypertension, diabetes, hypothyroidism, etc. The more your health fails with the higher number of disorders, the more expensive your health insurance premium gets. 

You may not be able to prevent the common ailments but you can surely make provisions to deal with them if needed.

Start getting out of debt

This is a good time in your life to become debt-free. Start getting out of debt and definitely prevent yourself from piling on new debt. Responsibly invest in products that fetch higher returns so that you can clear your debt. 

However, be matured in your decisions and do not opt for unrealistic investments that may prove to be too risky.

Diversify your portfolio

Apart from the equities, mutual funds, etc, also look to invest in gold and real estate. Diversification is the key and this is a good time in your life to look into such types of investments. These are long-term investments that can help you to get better returns at a later stage in life. 

Maximize your tax saving

By the time you hit your 40s and 50s, you are surely well aware of the importance of tax saving. Use all your tax knowledge and maximize the tax saving. The money you save by careful tax planning can further be invested in a retirement or health fund. This can prove to be very beneficial in the present as well as the future. 

Estate Planning

It is time to start your estate planning for a smooth transition of your assets to the next generation, be it property, financial investments as well as physical assets. In your 40’s and 50’s, you would most likely be certain about whom to pass your assets after your lifetime. This is a time taking process and it’s best to start early and there is no harm in planning earlier as the same can be changed at any point in time.

Retirement may seem fascinating but could be intimidating as well if it is not well planned. Plan your post-retirement work or passion, that you wish to focus on and start skilling yourself in that manner. It would not only help you be occupied but keep your mental health in place.

Now that you are in your 45’s, make sure you make fitness your priority. Do not forget to walk that extra mile to keep yourself fit and healthy for a fantastic life ahead!

Follow the above 7 steps to the tee which would ensure your post-retirement life is not a financial burden to you or your family!