The Late Bloomer Program

For whatever reason, when people reach the age of 50, the investment light bulb shines the brightest.  This is likely because the proverbial finish line (i.e., retirement) is in sight.  The initial thought is that with 10 – 15 years left, it is time to take this seriously.  With the follow-up thought of “Oh no, I don’t think I’ve done enough, and now I’m screwed.”

 

Many times, these people include:

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• Business Owners… Those who never took the time to invest as much as they should have for retirement, working on the premise of their business, will provide their retirement upon selling it, and now realize their business value is not what they thought it would be upon sale, or

 

• Future Pensioners… Who always believed their pension benefit would be plenty in retirement but now realize their pension was never meant to replace 100% of their pre-retirement income or

 

• Poorly Allocated 401(k) Contributors… Who have always been great at contributing to their 401(k) account but never took the time to see what they were invested in, only to realize now that 40% of their portfolio has been invested in bonds, resulting in a subpar balance.

 

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Whatever actions or inactions have landed you in this concerning investment position, there is no reason to despair.  For the following reasons (and more), all is not lost, and you can still build a meaningful portfolio to help meet your needs:

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• Ability To Invest At A Higher Level… At this point in your career, you most likely earn the most you ever have.  There is a good chance your household expenses have declined, freeing up more of your income to invest, leading to a more succinct increase in your portfolio value (just via your contributions).

 

• Tax Deferred Account(s)… At age 50, you can make catch-up contributions to your 401(k) account.  That is $30,000 annually (until the IRS raises it again). Now, if you are earning your highest income, you are in your highest tax bracket, so maxing out your 401(k) account now has its biggest impact!

 

• Our Investment Approach… Lastly, if you have followed conventional advice over the years, you have shortchanged your investment portfolio performance by being exposed to non-equity investments.  With us, we only use equities (stocks, mutual funds, etfs)… especially during your savings years.  With plenty of time to ride out any stock market corrections, this is how you should be invested… especially if you want to grow your portfolio (as you do).