For people whose 50s are just around the corner, it is important to work towards saving up for retirement so that people are financially stable for the long term. As Kavan Choksi says , people should ideally have six times their income saved by their 50th birthday to retire by age 67 without any hassle. This is the decade when the expenses associated with kids, aging parents, medicines, and questions about retirement starts looming at large.

Kavan Choksi offers valuable wealth management tips for people who are in their 50s

Turning 50 signals a major shift for many people, especially in the manner they approach their finances. If a person has kids, they probably would be preparing to leave the nest during this time. On the other hand, the person may progress towards hitting strides in terms of earning power. As retirement comes near, people should increase their efforts to save. Here are a few valuable wealth management tips people in their 50s should try to follow:

• Leverage savings options: Even though a 401(k) or some other employer-sponsored plan can be a good first stop for retirement savings, it is not the only way to build the nest egg. Once a person has maxed out the retirement account of their employer, they should try to supplement it with an IRA. The regular contribution limits for a 401(k) and IRA are set at $22,500 and $6,500 for the year of 2023. If a person is in their 50s or older, they would get a bonus in the form of catch up contributions.
• Be strategic about paying down debt: Choosing to carry mortgage debt, student loans, or high credit card debt into retirement can be extremely risky, especially as the income of a person would go down once they have stopped working. When a person is in their 50s, it is prudent that they focus on eliminating as many of their financial obligations as possible. At this stage in life, people cannot afford to delay paying off their debt.
• Manage risk with care: Putting money in a savings account can provide people a deep sense of security if they want to be rich. Choosing to invest in mutual funds and stocks implies to taking a bigger gamble, but may help generate substantial returns in the long run. If people are fairly aggressive about investing up to this point, they should consider rethinking that strategy. For people who are in their 30s and have several years before them to retire would be in a much better position to rebound from a market decline than someone in mid-50s. Hence, it is prudent to take a look at the asset allocation of the portfolio, and see where the money is concentrated. When people are in their 50s, it would be a good time to pivot to more conservative investments

As Kavan Choksi says, wealth management and financial planning in 50s require a thoughtful and proactive approach. People need to assess their current financial situation with care, develop a comprehensive plan, and prioritize retirement savings. They should also try to diversify investments, and stay informed about financial matters.