10 Biggest Money Mistakes to Avoid in Your 50s YOUR 50S MAY BE YOUR LAST DECADE TO SAVE FOR RETIREMENT. UNFORTUNATELY, IT IS ALSO THE TIME WHEN MOST PEOPLE MAKE THEIR BIGGEST MONEY MISTAKES. MOREOVER, ANY FINANCIAL BLUNDERS COMMITTED NOW ARE TOUGHER TO RECOVER FROM, AND COULD HAVE MAJOR CONSEQUENCES FOR YOUR RETIREMENT.
To help you make the most of your 50s, here are the 10 biggest money mistakes to avoid:
Overspending :
You will reach your peak earning potential in your 40s, and this will continue into your 50s. At this point you get bigger pay cheques, which translate to a host of good things; but greater income also tends to increase the likelihood of lifestyle inflation. Suddenly life becomes a lot busier, and it becomes easier to get complacent and let expenses spiral out of control.
Trying to time the market
: History has proven that it’s impossible to consistently time the market. Even the professionals don’t get it right and they have access to more data and research than the average investor could dream of.
Reacting to the financial media :
Let’s make one thing clear, the financial press are interested in one thing and that is to provide entertainment in order to attract more viewers or readers.
To help you make the most of your 50s, here are the 10 biggest money mistakes to avoid:
Not understanding insurance :
As your cash flow increases, and as inflation raises the cost of replacing assets, you may realise that the policy you took out a decade ago has left you under-insured. The same goes for life insurance, so make sure it is able to keep up with your expenses.
Planning to rely on the government pension : The age pension may be able to provide for your basic needs during retirement, but don’t expect to live comfortably. Bear in mind that it is never too late to take control of your financial future by saving and investing a substantial sum.
Not diversifying your investments :
It’s rarely a good idea to have all your all your eggs in one basket. Having a broad portfolio of stocks, bonds, and other growth assets, is less risky and more likely to yield consistent and satisfactory returns over time.
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