Updated: 09 July 2020
During your fifties, it’s important to start planning for when and if you want to retire.
“The five years before you retire and the five years after you retire are the 10 most important years of your entire financial life,” says Ken Moraif, CFP, senior advisor at Money Matters in Plano, Texas. “Many studies have shown that if you take large losses during that 10-year period, you may not be able to retire or it could un-retire you.”
To ensure a comfortable retirement, make sure you have checked the following boxes.
Rebalance Your Portfolio Regularly
As you get closer to retirement, make sure that your investment portfolio smoothly transitions from one of aggressive growth to one of preserving wealth. This is done by shifting assets to lower risk investments such as bonds.
Plan Aggressively for Retirement
When it comes to planning for retirement, time is more important than money. If you don’t have at least 20 years to accumulate the desired goal, you will likely need to work all your life. Work with a certified financial planner to calculate how much you will need to live on during retirement.
Fund Your Retirement Before Your Children’s Education
There are student loans, grants, scholarships, and other options for your child’s education; there are not those additional options when it comes to retirement.