6 Things You Should Do When You Turn 50…

For most people, turning 50 is somewhat of a milestone. It is an age of “enlightenment," when they begin to realize that retirement is quickly closing in, and that it’s time to get serious about their planning. Here, Robert Henderson of Lansdowne Wealth Management in Mystic shares 6 things that everyone should do when they turn 50:

1. Focus on eliminating debt. One of the best feelings will be heading into retirement without this burden.
2. Review your estate plan. At minimum, this should include a will, a health care proxy/living will/health care directive, durable power of attorney, a living trust, and a review of all of your beneficiary designations (for retirement accounts, insurance policies, annuities, etc.).
3. Research your need for life and/or long-term care insurance. As you age, these types of insurance become more and more expensive. In some cases, you may become uninsurable due to medical problems. The earlier you can identify the need for one or both (based on your circumstances), the better off you’ll be.
4. Begin saving and planning for major purchases. If you anticipate replacing cars, major home repairs/remodels, 2nd homes, college tuition, financial support for a parent, etc., try to begin planning for those now. It is much easier to plan for major expenses while you are still receiving a paycheck.
5. Maximize tax-deferred savings. You are most likely entering your peak earning years, and thus your tax bills may be getting larger. Contributing to tax-deferred savings (such as a 401K plan) has the dual ability to help you save on taxes now AND increase your retirement nest egg.
6. Hire a fee-only financial planner to review your financial situation and provide recommendations that you can implement now, while you still have several working years ahead of you.

Robert C. Henderson is president of Lansdowne Wealth Management, LLC, a fee-only financial planning and investment firm located in Mystic, CT. He can be reached at (860) 245-5078, or bhenderson@lwmwealth.com, http://www.lwmwealth.com.