When you turn 50, you start to think practically about the steps of your retirement transition. A to-do list emerges of tasks to try to accomplish, as well as things to consider.
Now is the time to pour all you can into your retirement savings. As an example, say you direct $15,000 annually into your workplace retirement account from age 55 to 65. If the account returns 6%, you will see $48,000 growth off the $150,000 in salary deferrals. An additional $198,000 sounds nice, but keep in mind that your annual contribution ceiling rises to $24,000 starting at age 50. Contribute $24,000 annually to that retirement account returning 6% across those 10 years, and you will have an added $316,000 for your “second act,” including $76,000 in growth.
Whittling down your debt should also be a goal. About 30% of seniors have outstanding home loans, and the average household headed up by seniors age 65–69 carries nearly $7,000 in monthly credit card charges. Are your investments too bullish? It may be time to reduce the amount of equities in your portfolio. Thanks to the recent rally on Wall Street, there may be a higher percentage of your invested assets in stocks than you assume, and this could expose you to more risk than you prefer.
A Hepatitis C Test Might Be Wise
The Centers for Disease Control and the U.S. Preventive Services Task Force both recommend that people born between 1945 and 1965 test for Hepatitis C. About 75% of the 3 million Americans now infected with the virus were born in that period.
This infection is often linked to intravenous drug use, and you may dismiss the possibility of having it. The chances may not be so remote. Hepatitis C is a blood-borne virus, and if you received any blood transfusions or had an organ transplant prior to 1992, you have an increased risk of carrying it compared with the rest of the population. An inexpensive, basic blood test can determine its presence. Should you test positive, a subsequent HCV RNA blood test can determine whether the virus remains active—in that case, you would have chronic Hep C and need treatment. Anti-viral drugs can often wipe out the infection, but they are costly and insurance may not cover them.
You should still test for the virus, as it can lurk for up to 30 years without any symptoms. Too many people learn they have Hep C when diagnosed with liver damage.
On the Bright Side
If you wait until age 70 to collect Social Security, you will have a monthly benefit 132% larger than the one you would collect at age 62.
Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Lighthouse Financial, LLC., a Registered Investment Advisor. Cambridge and Lighthouse Financial, LLC., are not affiliated.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
1 – fool.com/retirement/2017/07/16/5-retirement-questions-to-ask-yourself-in-your-50s.aspx [7/16/17]
2 – newsok.com/article/5549661 [6/5/17]
3 – money.cnn.com/2017/04/27/retirement/delay-retirement/ [4/27/17]