In your 50's, consider the following points


Typical profile:
Depending on financial circumstance, risk profile and income, consider and take professional advice on the following:

Mortgage

Strive to pay down the mortgage to low level, no need to pay it off if equity can be used to leverage other investments.


Investments

Review all assets and create simple 10 year set of goals. Investment growth does not stop when you retire and investment assets should be inside your Super environment by the time you retire to gain maximum tax benefits. Remember, your super investments may need to last 30 years after you retire.


Insurances

You may have held insurances for 20 or more years, these need to be reviewed for benefits and premium levels as it is unlikely you will be changing them when you reach your late 50's. If you are in good health there is no reason not to consider changing them if you can get additional cover for the same outlay or better terms and benefits or even lower premiums. If you have no personal insurances and you are in good health, do it now. Income protection insurance ceases at age 65 except for some professions, if you fall ill, it may take some time to recover or you may never be well enough to return to work.


Transition to retirement

Not really! However this can be a good strategy if earning over $100,000 per year and you have a reasonable Superannuation balance. If you are over 55 you are able to set up a pension to draw from while salary sacrificing an additional amount to your Super. The end result can be the same net monthly income but with more contribution being made to your Super investment.


Super Contributions

If the only contributions to your Super have been made by your employer in the past, you need to be salary sacrificing an extra 15% into your Superannuation.



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