Your 50’s should be a time when you can concentrate on you. The kids are all grown up and the financial pressures associated with raising children should be more or less over. You should also be at the top of your game when it comes to your earning potential. It is easy to fall into the temptation of treating yourself with holidays, fancy cars, or new clothes. Of course, you should live life a little but you also need to think about the future and how you can build up those wealth reserves. Here are some ideas for ways that you can increase you wealth in your middle years.
1.Look into the future
To beat the temptation to spend all of your money now you need to build up a picture of how you want your life to look in 20 to 30 years time. Those more willing to wait for rewards are those who know what they are working towards and can have a clear image in their mind of exactly how they want their money to work for them. Now is the time to start working on your retirement plan.
2.Become a landlord
Property, it seems is one area of investment that never seems to suffer, even when financial markets aren’t prospering. With the population increasingly growing, it makes sense to invest in real estate and become a landlord. You will have an investment that can be sold should you need the cash injection and a monthly income in the form of rent. Have a read through our guide to common property investing mistakes before you get started.
3.Sell your life insurance policy
Many people in middle age find that they no longer need their life insurance policy. For many, their partner and children, for instance, might now be in a position where they are financially stable enough to be able to cope with their death, at least in monetary terms. It can make sense to look at life settlements and sell off your life insurance policy in order to recoup some of the money that you have paid into it over the years.
4.Go easy on school loans
It is never easy to deny your children, but if you can’t really afford to you should refrain from offering to help with all their school costs. If you are in a position where you are considering taking out a loan to help your children, you really need to think about the impact on your retirement fund before you sign on the dotted line. Interestingly, many people in their 50s are struggling with debt, don’t let that be you.
5.Dig into investment fees
If you are lucky enough to have an investment manager, you really need to be making sure that you are not overpaying in fees. Really dig into what they are charging you to make sure you understand them and that their charges can be justified. After all, anything your overpay here is coming straight out of your retirement fund.