If you are currently in your 50s, retirement is certainly on the horizon. You may have already done a good job of saving and planning for your retirement, although recent studies show that more than half of Americans are financially unprepared for retirement.
Here are three things you should do before you reach the age of 60 to ease your way into a secure retirement:
1. Catch up. After you turn 50, you are able to contribute more than you have in the past to qualified retirement plans and IRAs. You can add another $5,500 to the $17,500 contribution limit for 401(k)s in 2013 and another $1,000 to the maximum limit of $5,500 for IRAs.
2. Revisit asset allocation. As you near retirement, you may need to rebalance your portfolio to move a portion of your money into conservative investments so the cash you need in your early retirement years is there./
3. Plan for long-term care. Long-term care costs can be one of the biggest threats to your nest egg. Research shows that a majority of us will need at least three years worth of long-term care, so check into long-term care insurance. Prices rise significantly after age 60, so invest in a plan while you are still in your 50s.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0041.