If you are age 50 and older, there are many financial opportunities in front of you. You’re likely in your peak earning years and also have less debt. The kids are finally out of the house and paying off the mortgage is within your grasp.
Are you taking advantage of this stage in your life?
If you’re 50 years old…
The year in which you turn 50 years old is the year in which you can start making “catch-up” contributions to your retirement plans.
- For anyone eligible to make a Traditional or Roth IRA contribution, the annual limit increases from $5,500 to $6,500.
- Contribution limits for certain employer-sponsored plans increase. The salary deferral limit for 401(k)s and 403(b)s increases from $18,500 to $24,500 for 2018. Anyone participating in a SIMPLE IRA can defer an additional $3,000 of salary, increasing the annual salary deferral limit from $12,500 to $15,500.
But what happens if you die prematurely before you’re able to play catch-up with your retirement accounts? What are you leaving your loved ones? Will your surviving spouse have to dip into their retirement accounts early and be faced with a tax penalty? Life insurance that lasts at least 20 years purchased at or around age 50 is a tremendously important financial instrument to ensure the success of your loved ones’ financial plans—even if you are no longer around.
» Compare: Term life insurance quotes
If you find yourself needing more life insurance coverage, term life insurance is also still quite affordable at age 50. Below is a table showing the estimated costs for a 20-year $250,000 term life insurance policy for a 50-year-old non-smoking male in excellent health. Your costs may be different depending on your