It’s not all downhill after age 50. In fact, when you are over 50, catch-up rules kick in with regard to retirement plans.
This means that you are legally allowed to invest more than the allowable rate in a Roth IRA or a traditional IRA than those who are under age 50. In 2014, it is possible to invest up to $6500. People ages 50 and over can also add an extra $5500 in a 401(k) for a maximum contribution of $23,000.
Consider whether life insurance is really necessary at this stage when you are 50 or older. Most of the time people purchase coverage to protect their families in the event of a death. But are your children self sufficient at this point and all grown up? They may no longer need this death benefit money.
People over age 50 can look to obtain savings in their auto and homeowner’s insurance policies. Discounts are offered through many insurers for those over 50, often due to job tenure or to reward longevity with the same insurance company.
Elder Care Planning
It’s good to start planning for elder care expenses now. Most people underestimate the yearly costs of long-term care by more than three times what it actually costs. According to a survey by Nationwide insurance, nursing home care could reach $265,000 a year.
Consider hiring a fee-only financial planner as opposed to an adviser who earns commissions on products that they sell to you. And create a will and estate plan that is up to date and reflective of your wishes, regularly revisiting your plan to make sure it is up to date.
Contact Halligan & Keaton Today
If you want to discuss planning for your estate, are responsible for an estate or are a beneficiary and you believe an estate is being mismanaged, contact our office for a free consultation.