Top 10 Retirement Tips for those in Their 50's: Planning for Your Golden Years - Revised!

Planning for retirement in your fifties? George Jameson, CFP® of Capital Wealth Group, shares 10 essential tips to set yourself up for a secure, enjoyable retirement. 

 Welcome to "The Retirement Guide" Podcast! I'm your host George Jameson, owner of Capital Wealth Group, a Fee Only Advisory firm. Whether you’re nearing retirement or already retired, Join me each week as we explore the world of retirement planning and equip you with the knowledge and tools you need for a successful retirement.

Thank you for tuning in to this episode of The Retirement Guide. If you enjoyed this episode, please subscribe & leave a review. If you'd like a free 30-minute retirement review, visit our website at www.capitalwealthplan.com to schedule.

This is for education only.It is not tax, legal, or investment advice. Before  acting on any information consult your tax, legal, or investment advisor.

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Capital Wealth Group is a Fee-Only Advisory Firm located in Columbia, SC , serving clients locally in South Carolina and North Carolina and virtually nationwide.

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Transcript

George Jameson: 0:19

Welcome. I'm George Jameson, certified financial planner and founder of Capital Wealth Group, and today we're talking about the top 10 retirement tips for those in their fifties, planning for your golden years. When you hit your fifties, something happens, you start realizing that retirement isn't just an abstract, someday it's getting closer, and here's the reality. The choices you make in the next five to 15 years will have a big impact on your retirement. You can still make a huge difference in your retirement lifestyle, but you've got to be intentional. So today I'm sharing my updated top 10 retirement tips for those in their fifties. These are based on current tax laws, retirement account limits for 2025 and the financial realities I see every week with clients who are getting close to their golden years. Number one, take a real retirement inventory before you start making changes, get the truth on paper. That means one, how much do you have in retirement accounts? How much do you have in after tax accounts, and how much cash do you have? Number two, what's your debt situation? And then number three, what are your fixed monthly expenses today? In your fifties you don't have time to guess. You need a starting line, and I mean an honest one, not the optimistic numbers. We all keep in our heads. The second tip, know your retirement lifestyle number instead of just saving as much as you can and hoping for the best, define the lifestyle you want in retirement. Ask yourself, do I want to travel every year? Will I help kids or grandkids financially? If so, how much? How much will I spend on hobbies, entertainment, or even healthcare? From there, estimate your annual retirement spending in today's dollars. A lot of people find that this exercise either confirms their own track or gives them a wake up call to ramp up savings. The third tip, supercharge your retirement contributions. For those who need to play catch up 2025 contribution limits have gone up again, and this is your prime earning decade. If you're 50 or older and have access to a 401k or 4 0 3 b. You can contribute up to 31,000 total per person, including the$7,500 catch up. And keep in mind this does not include any company match in addition to a 401k or 4 0 3 B. You can do a Roth IRA contribution. If you're 50 or older, you can contribute up to 8,000 per person. You could also do a backdoor Roth IRA. If all of your assets are still held within a 401k or 4 0 3 B. A married couple with access to 2 4 0 1 Ks could put away up to 62,000 per year just in those accounts, and still add another 8,000 into a Roth IRA or Backdoor Roth contribution. Don't forget, you can contribute an unlimited amount to taxable brokerage accounts. It's usually a good idea to have tax diversification heading into retirement. If you're self-employed, look at a solo 401k as a great option for you and even your spouse. A high earning couple running a business together can potentially sock away over six figures a year into tax advantage accounts. The fourth tip, optimize. Don't just diversify. Diversification is still important, but in your fifties, it's not just about spreading money around, it's about making sure each dollar has a purpose. You may want to think in buckets to help grasp this concept. For instance, a short term bucket would be one to five years of income needs. Things like CDs, money markets, short-term bonds, treasuries, and so on for safety. Then you have a growth bucket. This would be stock market investments for the 10 plus years out to fight inflation. And then you may wanna have a third bucket, which I call an income bucket. It's assets designed to produce steady cash flow when you stop working, the goal is to protect what you'll need soon while still keeping part of your portfolio growing into and during retirement. And the fifth tip, make a tax plan before retirement. One of the biggest mistakes I see is in waiting until after you retire, to think about taxes. In your fifties you may still be in your highest earning years, but you may also have opportunities to use tax strategies like Roth conversions, shifting investments into more tax efficient accounts. Even harvesting capital gains in lower tax years if you cut back on work, if done right, attend to even 20 year tax strategy can save you hundreds of thousands of dollars over your lifetime in taxes. And then the sixth tip, get serious about debt freedom. High interest debt like credit cards, personal loans, expensive car loans, has to go period. Even with low interest mortgages, run the numbers and decide if paying it off before retirement makes sense for you. Some clients like the security and peace of mind of being debt free when the paycheck stops. Others keep a low rate mortgage and invest the difference. It's a personal preference and not always about the math. There's no one size fits all answer, but it's a conversation you need to have now. Not when you're 64 or 65. And then the seventh tip, have a healthcare game plan. Healthcare can be one of the largest expenses in retirement, especially if you retire before Medicare kicks in at age 65. If you're planning to stop working in your early sixties, you need to make sure you know what the cost will be for health insurance. Currently, ACA marketplace plans are your best option if you retire early. You need to make sure you include this as part of your plan. If you don't already, you may look into health savings accounts, HSAs, they're the only accounts that offer triple tax advantages if you're eligible. Your fifties are also a great time to prioritize your own health. Every dollar you spend on wellness now can potentially save you thousands in medical costs later. More importantly, enhance your quality of life. The eighth tip decide if downsizing or relocating makes sense. For many in their fifties, the big house that once made sense now means higher property taxes, higher maintenance, and higher utility bills. Downsizing or even relocating to a lower cost area can free up home equity that you can invest. Lower ongoing expenses, which is very important in retirement, and also reduce the physical upkeep as you age. And even if you're not ready to downsize yet, it's worth running the numbers so you know your options. Alright, onto the ninth tip test drive retirement. One of my favorite strategies is what I call the retirement test drive. For six months to a year live on the budget you expect to have in retirement, even if you're still working. This does two things. Number one shows if your projected budget is realistic, and then two lets you stash the extra income you're not spending into savings. Most people discover at least a few surprises during this exercise. Better to learn them now than when it's permanent. The 10th and last tip, update or create your estate plan. I've seen far too many people in their fifties who don't have even basic documents in place. At a minimum, you should have a Will, Power of Attorney for your finances and healthcare, update beneficiary designations on all your accounts, and possibly a trust depending on your situation. Your estate plan is about more than money. It's about protecting your family from legal headaches and making sure your wishes are followed. So my final thoughts, your fifties are the high impact years for retirement planning. You've still got time to grow your savings, make strategic decisions, and protect against risks, but you can't afford to drift. Pick two or three of these tips to start working on them this month. Small, consistent actions over the next five to 10 years can mean the difference between just getting by and truly enjoying your golden years. Again, I'm George Jamison, certified financial planner and founder of Capital Wealth Group in Columbia, South Carolina. That's it for today's episode on the top 10 Retirement tips for those in their fifties. If you would like help building your retirement plan, I offer free no obligation consultations. And for my DIY listeners, I can create one-time retirement plans with cashflow projections, income strategies, Roth conversion analysis, investment advice, access to right capital, software, and much more. We can work together in person or virtually your choice. Don't head into retirement without a plan. It's just not worth the risk. Thanks for tuning in. Be sure to subscribe, leave a review and share this episode with a friend. Until next week, happy planning.