• Basic Membership Access to Journal, Shadow Stock portfolio & monthly updates for stock screens
  • A+ Investor Full access to AAII.com, Journal, and a power data suite for investment ideas
  • AAII Platinum Full access to all of AAII's model portfolios and premium services at a significant discount
  • Dividend Investing Newsletter and model portfolio that focuses on dividend growth
  • AAII Growth Investing Find secular growth stocks poised for outperformance regardless of macroeconomic conditions.
  • Retirement Investing Discover trusted strategies for every stage of retirement. Get actionable insights and resources for smart retirement planning.
  • Sentiment Investing A research-driven newsletter with 10+ signals decoding sentiment across retail and institutional behavior.
  • Stock Superstars Report Get stock ideas inspired by the market's leading professionals
  • VMQ Stocks For the value investor looking to harness academic research in an actively managed portfolio
  • Bits and Bips Newsletter delivering insights on linking traditional finance, macro trends and cryptocurrency opportunities to help investors build stronger, more diversified portfolios.
All premium products come with free basic membership.
Explore All Membership Options
Join Now
Dispatches

Seven Steps That Couples in Their 50s Should Take

To be better prepared for retirement, Money Magazine suggests seven smart moves for partners in their fifth decade of life.

Money Magazine lists what it describes as seven smart moves that couples in their 50s can take to be better prepared for retirement. Those steps are:

1. Assess What Retirement Will Cost: Mapping out a rough budget and plugging those numbers into a retirement calculator can help determine if you will have enough in savings to support your intended lifestyle.

2. Boost Savings at Age 50: The tax code allows individuals age 50 and older to contribute an extra $6,000 per year to a workplace retirement plan such as a 401(k) plan. The rules also allow an extra $1,000 per year to be contributed to a traditional IRA.

3. Consolidate Accounts: Over time, the number of financial accounts a couple has opened may have increased. Consolidating them into fewer accounts eases the task of financial management and increases the clarity of how investment dollars are allocated across both spouses’ accounts. See “IRA Rollover Chart: Rules Regarding Rollovers and Conversions” in the July 2016 AAII Journal to find out the rules for rolling over retirement accounts.

4. Make Your Kids Financially Independent: Money cites a Pew Research survey indicating that slightly more 18- to 34-year-olds are living with their parents than with a spouse or partner. Financially supporting adult children can hinder plans to save for retirement, leading to future financial problems for the parents.

5. Use Vacations to Check Out Retirement Locales: Those seeking to move to a different locale in retirement should consider using vacations to try out the area first. When doing so, think about what life will be like in terms of activities, socializing and even climate. Plus, realize that spending a week or two in one place is a far different experience than actually living there.

6. Make Big Changes If Behind on Savings: Those who have not saved enough for retirement can boost savings by downsizing their home. The proceeds from selling the bigger house plus the lower costs of the smaller house can be used to boost retirement savings.

7. Adopt a Healthy Lifestyle: Exercise and a proper diet can reduce the risk of illness and may even reduce medical bills.

Source: “The 7 Retirement Moves Couples in their 50s Should Make Now,” Penelope Wang, Elizabeth O’Brien and Kerri Anne Renzulli, Money.com.

Discussion

No comments have been added yet. Add your thoughts to the discussion!

You need to log in as a registered AAII user before commenting.
Create an account

Log In

Get your free copy of our special report analyzing the tech stocks most likely to outperform the market.
Download the FREE Report Here: