Your 50s are a crucial time to focus on building wealth and preparing for a financially secure retirement.
With less time before retirement, you need to make smart decisions that maximize your earning potential and grow your investments.
While traditional saving methods still matter, there are unique approaches you can take to boost your wealth-building efforts. Here’s how to build wealth in your 50s with lesser-known, yet powerful strategies.
1. Maximize Catch-Up Contributions
As you hit your 50s, you’re eligible for “catch-up” contributions in retirement accounts, and this is a powerful way to grow your wealth faster.
- 401(k) catch-up: The IRS allows you to contribute extra to your 401(k)—up to $7,500 more per year on top of the regular $22,500 limit in 2024.
- IRA catch-up: You can also contribute an additional $1,000 annually to your IRA.
- Health Savings Account (HSA): If you have a high-deductible health plan, you can make catch-up contributions to an HSA, which provides tax advantages on medical expenses.
These catch-up contributions offer a unique opportunity to grow your savings significantly in your final working years.
2. Consider Alternative Assets for Portfolio Growth
To diversify your wealth-building strategy, consider investing in alternative assets. These can provide higher returns and protection against stock market volatility.
- Private equity and venture capital: These investments give you access to high-growth private companies and startups. Though they carry more risk, they can offer significant returns.
- Commodities and precious metals: Investing in commodities like gold, silver, or agricultural products can hedge your portfolio against inflation and market downturns.
- For an alternative asset with strong potential, consider Supervest’s Small Business Finance Notes. Offered by our sister company, these notes allow you to invest in small business financing, providing you with a unique opportunity to earn consistent returns.Proven performance – Supervest has consistently achieved 100% of their target returns, making it a reliable option for diversifying your portfolio.
401(k) eligible – You can invest in Supervest’s Small Business Finance Notes through your 401(k), allowing you to take advantage of this asset while growing your retirement savings.
Passive income potential – These notes provide regular income from repayments on small business loans, making them a stable option in a well-rounded portfolio.Supervest’s Small Business Finance Notes offer a low-volatility way to enhance your wealth-building strategy, especially as you seek alternatives beyond traditional stocks and bonds.
Adding alternative assets to your portfolio can provide more stability and potentially greater growth, making it a smart move in your 50s.
3. Explore Income Streams Beyond Your Career
In your 50s, it’s time to consider diversifying your income sources beyond your current career. Creating new revenue streams can significantly boost your wealth.
- Consulting or freelancing: Use your years of expertise to start consulting in your industry or working as a freelancer. This can provide high-income potential without the demands of full-time work.
- Dividend-paying stocks: Shift part of your portfolio into dividend-paying stocks to generate regular income without selling your assets.
- Online businesses: Starting an online business, whether it’s selling products or offering services, is now more accessible than ever. It can become a passive income source to supplement your retirement savings.
Diversifying your income streams gives you flexibility and resilience as you approach retirement.
Final Thoughts
Building wealth in your 50s is about more than just saving—it’s about making smart, strategic decisions that can accelerate your financial growth. By maximizing catch-up contributions, exploring alternative assets, and diversifying your income streams, you can significantly enhance your financial position and ensure a comfortable retirement.
Now is the time to review your wealth-building strategy and take action. Implement these less conventional tips to make the most of your 50s and build wealth in your 50s and beyond.
