Your 50s Financial Planning Checklist

Action Steps:

• Target net worth: 6-8x annual salary by age 55, 8-10x by age 60
• Calculate total retirement income from all sources (401k, IRA, SS, pension)
• Run Monte Carlo simulations (90%+ success rate for comfort)
• Work with CFP to stress-test plan against inflation and market downturns

Action Steps:

• Create My Social Security account at ssa.gov to verify earnings record
• Age 62: 70% of full benefit | Age 67: 100% | Age 70: 124% (8% increase/year)
• If married, coordinate with spouse for maximum household benefit
• Consider breakeven analysis: Waiting until 70 breaks even around age 80

Action Steps:

• If retiring before 65: Budget $6K-$24K/year for health insurance
• Explore COBRA (18 months), ACA marketplace, or spouse's coverage
• Enroll in Medicare during 3-month window around 65th birthday
• Understand Parts A, B, D and Medigap/Medicare Advantage options

Action Steps:

• Pay off mortgage before retirement (or have clear 5-year payoff plan)
• Eliminate all credit card, auto, and personal loan debt
• If mortgage balance is low, consider lump-sum payoff from savings
• Goal: Reduce fixed expenses to 50% or less of retirement income

Action Steps:

• Target 60-70% stocks, 30-40% bonds in early 50s
• Shift to 50-60% stocks, 40-50% bonds by age 60
• Create 1-2 years of living expenses in cash/bonds (reduces sequence risk)
• Avoid panic selling in downturns—stick to your allocation plan

Action Steps:

• Track current expenses for 6 months to establish baseline
• Project retirement expenses (typically 70-80% of pre-retirement income)
• Budget separately for fixed (housing, insurance) vs. discretionary (travel)
• Plan for 3% annual inflation to maintain purchasing power

Action Steps:

• Understand tax treatment: Traditional IRA (taxed), Roth (tax-free), Taxable (cap gains)
• General strategy: Taxable accounts first, then traditional IRA, then Roth last
• Plan for RMDs starting at age 73 (Required Minimum Distributions)
• Consider Roth conversions in low-income years (ages 60-70 before SS/RMDs)

Action Steps:

• Evaluate long-term care insurance (best rates in 50s before health issues)
• Consider hybrid life/LTC policies or annuities with LTC riders
• Self-insure if net worth exceeds $2M+ (can cover costs from savings)
• Discuss expectations with family and establish healthcare directives