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Solidifying Your Finances in Your 50s


Solidifying Your Finances in Your 50s

Welcome to your 50s! Your kids are on their way out of the house or might even be out already. So, what does this new chapter look like for you and your spouse when it comes to your finances in your 50s?


Do you plan on moving, traveling, or continuing to work for a few more years? Maybe it is time to indulge in those hobbies or activities that you love doing together. With these decisions at the forefront, it is also important to remember that this new chapter in your life includes a new chapter for your finances.


Ultimately, now is the time to get yourself and your spouse on the same page for this new chapter! It might take a little work, but with the right amount of effort, you will be able to grow together and enjoy this new phase.


In this blog, Park City Wealth Advisors would like to introduce a few ways to transition your finances to fit this new chapter: the fifties.


Finances in Your 50s: Consider Your Life Insurance Plan


Speaking of kids out of the house, do you have a life insurance plan you have been funding for the last few decades to ensure your young family is protected? Your fifties might be the time to consider if that policy is still needed.


You can leave the policy in place, or, as your kids are off on their own, you can take the cash value out and help pay for school or maybe even that vacation home you have been dreaming of.


Stock Options


If a majority of the wealth or balance sheet is in your company or the company you work for, you want to consider a few very important things:


What happens to your stock options if you pass away? Will your stock options go to your estate or simply go away? If it’s the latter, you will absolutely want to consider exercising some of those valuable options and make sure your spouse is protected.


Either way, this is the decade to start protecting what you have worked hard to build. If you have super concentrated assets, now is the time to start diversifying. You worked hard for your assets, so you want to ensure those assets continue working hard for you, especially through retirement. Diversifying your portfolio using precise strategic insight will protect and maximize your wealth.


Plan for a Successful Retirement


In your fifties, retirement is on the horizon. You are probably considering retirement in the next 5-15 years. The old school of thought was to start making your investment portfolio very “conservative.”

However, if you are like your peers, you actually need to plan for your money to last another 35-50 years.

If this is the case, we must think about risk differently. If all of your assets are in cash or fixed income, will you have any purchasing power, or quite frankly, any money left to pay for your livelihood in 30 years? There are also healthcare costs to think about.


Don’t Be Scared to Ask for Help


If you haven’t run a financial plan recently, now is the time to do it. Understand your degrees of freedom regarding spending, retirement, and how social security might influence your picture. A financial plan will consider any significant financial moves you might be considering.


Forbes warns: “Making the right moves in your 50s can dictate the success or failure of your retirement plan. Take things step by step and think about the long-term and you will find that your money will work hard to take care of you later on.”


When it comes time to stop drawing on your paycheck and start living off your balance sheet, you will want an expert opinion to help you get your ducks in a row. Consulting a wealth advisor ensures a strategic plan for your financial legacy with a steady aim at your best interest.






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