Happy Birthday to the Academy Award Winning actor and one of Hollywood’s most handsome men, Brad Pitt! In honor of Pitt celebrating the big 5-0 today, Market Watch came up with five things everyone should check off their financial to-do list once they turn 50.
Take advantage of those 401(k) catch-ups. You can now set aside an extra $5,500 a year pretax. While that may be only a minuscule percentage of your income, it can make a big difference to how the rest of us do in retirement. Do it for 15 years, assume a compounded 5% return and it’ll ad up to an extra $146,165 at age 65.
Don’t neglect your health. This is when you start with those a once-a-decade colonoscopies. But it’s also a good time to plan for how to pay for long-term care – for yourself and your parents. This will be a major expense for many Americans, and whether you love or hate Obamacare, it’s not stepping into this. Long-term care is only getting more expensive as life expectancies increase, yet who wants to be a burden to their kids? If you haven’t yet, it’s time to start pricing policies. Here are four ways to cut the cost.
And nope, multivitamins aren’t of much use for keeping you healthy.
Prepare for life after work. Sure, you and Angie think you’ll be be making movies for as long as you want, but boomers’ plans to keep working often go awry, often for health reasons. (We won’t get into age-ism in Hollywood. Or that make too many turkeys and there goes your career.) And your lifestyle, with all the travel, nannies and the rest, is pretty costly. We’re not saying you’ll end up like Tori Spelling, but money can run out. Have a plan.
For the rest of us, use the AARP’s calculator to see if you are saving enough.
Have you talked to an estate planner? Time to make sure you’ve got a plan, and afinancial adviser who thinks about risk like you do. And will you and Angie ever marry? Not saying you should, but if you don’t, there are some financial hassles to consider in anticipation of the unhappy day when one of you dies. After all, the two of you have six kids together; you’re basically a Southern Gothic melodrama waiting to happen. You can find more estate-planning advice from MarketWatch here.
Come up with a plan to change the world. More prosaically, what about an encore career? We know about your Make It Right affordable-housing effort in New Orleans, which, by the way, may need some help. Even boomers without your money can do some good, or just start a different career. And moving to a university town is often part of the plan. You could always head back to Columbia, Mo., one of our best small cities to retire in, and finally get your journalism degree. Or switch to architecture.
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Original article courtesy of Market Watch.