In your fifties, your children may be grown. Perhaps your youngest is about to depart to make her own way in the world. You find yourself, your spouse and your cat enjoying a cup of tea alone, in the sudden quiet of an empty house.
This is not a time for sadness. Don’t think of it as losing a daughter – think of it as regaining a bathroom!
Your 50s can be your first opportunity in years to stop thinking as much about your children, and plan a little more for yourselves. Time to look at your retirement planning.
Perhaps now there is time to revisit your investment portfolio and ‘get back to basics’. Time to look at the fundamentals. Time for a little fine-tuning, as you slowly navigate towards a well-earned retirement.
Your risk profile for investments may be different now. Funds investments you made in the past may now be looking a little too boisterous for your current tastes.
Perhaps, as retirement approaches, it is the time to bring your savings to a safer haven. You may wish to switch from your ‘equity income funds’, and sail your money to the calmer waters of one of the many ‘cautious managed funds’ that are available.
In your next ‘financial healthcheck’, you may also wish to ask your financial adviser about inheritance planning. Your financial adviser will be happy to co-ordinate with your solicitor to ensure that your will is in place and properly formulated.
One crucial issue to examine is Inheritance Tax (IHT). This can apply to portions of your total wealth that exceed your Inheritance Tax allowances – and it can eat up 40% of that cash!
The good news is that Inheritance Tax is known as the most avoidable tax of all – however, you have to have the right financial advice!
