Turning 50 is a momentous milestone in an individual’s life. It doesn’t only represent that you will be near the top of your career, but it also means you will have lots of responsibilities with a family to look after.
The utmost important thing is that you don’t have more than 10 years of service left and retirement is very near. Therefore, you need to plan for retirement.
Initially, determine how much money you would need to post your retirement.
Focus on your savings
In the 50s of your life, your aim should be maximizing savings so do not focus too much on maximizing your returns. If you are in your late 50s then pay special attention to the fact that you can’t afford to take too much risk.
Revisit your portfolio
If you previously had a portfolio, then it is time for you to revise it. You should avoid taking needless risks at this age of your life, but at the same time you can’t be completely conventional. Look through your portfolio and try and lessen the allocation of risky assets and substitute them with safe options.
Don’t depend on PF alone
Provident funds can be one of the safest investment options and it is fortified to have a PF account, but depending totally on your PF for retirement needs is not something you should go all-out for. Validate that your portfolio has a combination of equity as well to keep returns on an upward graph.
Don’t get tangled in new loans
By the time you reach 50, you’d be dedicated to playing EMIs on prior commitments, and in many cases, you’d be nearing the end of certain EMIs. But taking a loan would add a redundant burden to your finances. This will not only take away the lump for your investments but also put a dent in your savings.
Investment planning in your 50s is not a difficult combat if you stay disciplined and do not take decisions out of fright. Keep your plan simple and prioritize your needs. Though you can always pursue help from a finance professional who can assist you to take the right decision.