Are you a woman about to turn 50? Your 50’s are an excellent time to take stock of your finances. Your kids are finishing school and ready to enter the real world, possibly leaving you with more time and money. With your extra time and money ask yourself the following questions:

1.    When do I want to retire and how much do I need?

2.    Do I need long-term health insurance?

3.    Am I covered in case I experience a disability? 

4.    Do I have an Estate Liquidity plan? 

How women should think about retirement.  

As a woman thinking of retirement, let’s say you are 52 and you want to retire at 65 and live on $75,000 a year.  You find out your social security benefits total $48,000 a year.  (https//www.ssa.gov/myaccount).   You need to supplement your social security with $27,000 of your own money to reach 75k a year.  Assuming you live 30 years in retirement, you will need $722,440 at the start of your retirement.* Will your current savings and investments get you to that number?   If the answer is no, and you own your home, you might consider downsizing. Savings from a lower mortgage and the profit from the sale of your home can help fund your retirement. Downsizing may also give you the ability to fund above questions 2 through 4.

What about women and healthcare?

A woman’s last two years of life are the most expensive years for healthcare.  Consider buying a long-term healthcare policy in your 50’s to get the best price.  Check your work disability policy.  Does it replace most of your income?  Consider supplementing with a private disability policy. Review your estate liquidity needs. You need a plan in place that, if you should die, your dependents will be able to meet their living expenses. Consider a Term life policy that lasts until retirement.  Your 50’s are fabulous. But make sure you are prepared for your golden years.

I work with women in their 50’s and if you would like to get started on planning for your next chapter, visit my services page or schedule a free consultation to find out if we are a good fit to work together.

*3% inflation and 7% return on investments during retirement