Investment Advice For 50 Year Olds

Investing at 50 may seem scary. You may even worry that you won’t have enough saved to retire and enjoy the rest of your life when the time comes to retire. Here are some tips that will help you invest wisely including:

  • Building Your Investment
  • Increasing Your Investment With A Side Gig
  • Saving More With A 4O1k
  • Taken Advantage of Your Company Match Plan
  • Invest Automatically
  • Start A Health Account
  • Begin A Budget
  • Invest In Robo Advisor
  • Target Those Extra Fees

Your Investment With Stocks And 4O1k

The stock market has had its difficulties, but having stock can become an excellent investment at any age with a return of at least 10%. Buying stocks is as easy to do as turning on your computer and going online.

You can buy stock online, through a broker, or a financial expert. With stocks, you can buy them and sell them when you are ready. Beware, though, of risk factors involved when purchasing stocks.

Side Gigs

Saving money can be difficult, especially when your job doesn’t pay enough. Having a second job or a side hustle can help get you to an early retirement fast. Think about making something you love into an opportunity for earning extra cash. With a side hustle, you can put that money into a 4O1k as much as sixty-four thousand at age 50.

Saving more with your 4O1k

Even at 50, starting a 4O1k is still a smart investment if you don’t expect to have any income after you retire. Since the time you plan on retiring is sooner than if you were in your thirties, why not increase the amount of money you put into your 4O1k?

If your company has a traditional 4O1k or a Roth 4Olk, now is a good time to increase the amount you put into it. 4O1k plan is pre-tax, which means less taxable income. Roth 4O1k is considered post-tax, but you won’t have to worry about the money being taxed again.

You can place any amount you want into your 4O1k plan. Plus, you get the benefits of having your money earn compound interest.

Advantages Of Company’s Match Plan

Studies show that many Americans don’t take advantage of their company’s match plan.

The advantage of using your company match plan includes that it’s free, you build up your money faster because they will match what you put in. For example, if you put in 5 percent of your salary, then your company will match it with the same amount.


Saving money automatically is a good investment. You can go through your local bank, your employer, or credit union to set-up the process. Your employer can take the money out weekly or monthly.

Saving this way means socking away more money on your future retirement and spending less on non-essential items.

Investing With A Health Saving Account

Medical bills can become a burdened even if you have emergency savings built up. As medical costs continue to rise in 2021, a health savings account can not only provide you with extra money, but they have tax-advantages and help on high deductible.

Not only are you not taxed with this account, but it grows tax-free. You also don’t have to pay taxes if you have a medical emergency. This type of fund will decrease your amount of taxable income.

Make A Budget And Decrease Spending

According to Warren Buffett, you should not save what is left but spend what is left after saving. If anyone knew how to budget and live simple, it was him. Having a budget is vital for maintaining control over your money. Some individuals hesitate to take this step because they think they will have to give up on the things that they love.

Budgeting your money can help you stop overspending on items. One coffee mocha tall cost about 3.65 cents. You can google the recipe and make your coffee, saving over a thousand dollars annually, then invest the money you save from budgeting with a good mutual fund that has a return range from 3 to 14 percent.

Deciding on what you can do without or cut back on can increase the money you will put into your savings or mutual fund.

Cut out expensive items or look for cheaper substitutes. Cut back on your utility bills with smart devices. If you want to reduce your energy bill by a significant amount, install a smart thermostat.

Invest With Robo Advisors.

Robo advisors can help you maximize your money, especially if you can’t afford to hire a full-time financial advisor. Robo advisors automatically find the best investment based on predetermined requirements.

Some Robo advisors will even pick trades for you that present the highest profits.
A few of the most popular Robo advisors are Betterment, M1 Finance, and Wealthfront.

Examine your Fees With Fund Analyzer.

You don’t need your hard-earned money going into investing that gets eaten up by fees. The Fund Analyzer will aid in keeping a watch on fees by comparing thousands of mutual funds and exchange products.

You could more than double your money with low fees. Fund Analyzer will help make it possible to estimate fees, expenses, and even receive a discount for you.

Invest With A Savings Account

If starting small, look at a savings account that will offer you the best annual percentage yearly. Chime has a 0.50 APY with no minimum deposit mandatory. They also have other attractive features that help you save even more. Stocks and other investments you can lose, but while your money is in a saving account, it’s not going anywhere.

Should I Invest In Gold Or Other Precious Metals?

When you are finally able to make investments, it may give feelings of thrill and excitement. The reason for this is that we all want to see profits and returns from our investments. However, in many instances, when we try to make investment decisions, we may have feelings of doubt because we lack the proper information.

In many cases, we are not sure how to access this information from reputable sources. Over the years, the investment in metals that are rare or precious has remained on a regular up rise as a result of the demand for the commodity.

But what exactly are precious or rare metals? These items are that which contain a high economic value. In many instances, some metals may be used as legal tender, while in related cases, they are put to various other uses.

There are various rare metals available out there; however, the ones that attract the most interests are Silver, platinum, gold, Copper, Palladium, Ruthenium, Osmium, Rhodium, and Iridium.


Of course, as a result of its great demand, the of most interest and the most lucrative among these is gold. Due to this great demand and interest, gold has been the top option for investment. The need for gold has remained steady over the years due to its durability.

Authentic gold does not rust or corrode; gold can conduct heat and electricity. However, the world’s population first associates gold with jewelry, and this is where a large percentage of the demand comes in.

This can be pressed or hammered into any shape due to gold’s malleability without being cracked or broken, hence the large marketplace for gold.

Along with jewelry, gold is also used as a kind of legal tender. This is so because gold can as well be attained in the physical structure, which is in the form of billion. Of course, if you choose to put money in the physical form of gold, you should ensure it is kept in a safe and secure environment.

Gold in it’s bar form is what is referred to as bullion. This gold bar will also have a stamp on it, which contains information about the amount of gold and the level of purity that the bullion possesses.

Bullion and Gold coins for investment can be acquired from the U.S. mint, dealers, banks, brokerage firms. Purchasing a stock in companies with gold mints is the other option for gold investment and gold futures contracts, and other entities in the world of finance.

This option of investing is more popular than buying gold in physical forms. However, it is essential to note that while gold is an excellent investment due to its high value, this value is determined and evaluated on the market all day, every day of the week.

The increase and price decrease is less determined by the demand or supply but is more influenced by the large gold amounts that is already mined and in possession of other investors.

Whenever these investors decide to sell their gold, the market will see a decrease in the price, and when they are ready to purchase, the gold prices will go up.

Other relevant reasons why gold is so valuable and creates an urgency for investors to purchase more rare metals. Firstly based on financial concerns, whenever money and the banks are seen as unreliable, investors have found that gold has a safe storage of value.

Also, in political uprising and crisis, gold investment drastically increases due to the ability to transfer large sums of cash into portable gold bars or coins safely stored. The metal usually stays in storage until the time comes to trade it for essential items needed for survival.
Lastly, when investors are receiving negative returns on the equity real estate or bond markets in times of inflation, gold has always maintained its value.


Silver, which is also a great investment option, also has similar valuable properties as gold. In terms of durability, silver can maintain its value primarily due to its its rust resistance. Silver also possesses a certain amount of resistance to corrosion.

While gold is a stable source of value, silver does not contain or has the ability to maintain the same stability. Therefore price fluctuations are more frequent and volatile. Silver possesses value for storage and more.

Silver has a great demand for investment mainly due to the need for it in industrial development. The influence on the cost of silver fluctuates with new development and innovations.

As an example: Silver, which once played a significant part in the photography industry’s development, experienced a fluctuation in prices when the digital camera replaced the photographic film primarily made from silver material.

The increase in value of silver is also seen where small businesses begin operation and sell items such as electrical appliances and medical products, and other products requiring silver for production.

Apart from its value as an industrious metal, silver cannot burn and so can be transported with ease from location to location, which also makes it an attractive investment option. Due to its various practical purposes and its value as an industrial metal, silver will always maintain its value.


Platinum has some similarities to gold and silver due to its trade 24 hours a day on the global commodities markets. However, platinum may trade at a higher price because it is a much rarer metal and it is scarcer than gold.

Platinum is also an industrial metal like silver. It is primarily used in the automotive industry, petroleum and chemical, and the computer industry. Platinum also has a demand on the jewelry market.

Even though platinum is rare the demand for this precious metal is stable which makes it another good investment option. Apart from being used in various industries, investors and buyers also collect and store this metal.

Other Rare Metals

Less popular metals such as palladium, copper, ruthenium, osmium, rhodium, and iridium are also known as industrial metals. While they may not be widely known, they still maintain value due to their use in dentistry, medicine electronics, jewelry, and various industrial products.

In general, all rare metals provide good options for investment. Rare metals do not possess risk to your credit, and the people who invest can avoid inheriting the risk of inflation. They also provide genuine “upheaval insurance” opposed to financial or political upheavals.
Despite the many advantages of putting money into rare metals, there are risks associated with this form of investment. The prices for rare metals can fall due to there being too many sellers and not enough buyers.

The Best of the Best

However, in general, gold is the best investment option due to its great interest, great value, and supply. Yet, one has to make the decision whether they want to put money into physical gold or related gold options for security. Individuals have been advised to have a small amount of their assets transferred into gold because it is best used as an insurance policy.
Usually, in instances of individuals losing assets, their investment portfolios are able to keep some level of stability once gold accounts for some of their assets. However, this is not so in all cases, so we encourage you to employ the assistance of a reputable broker who can effectively assist you in making the right investment options related to rare metals.

Who Is An Annuity A Good Investment For?

How Does an Annuity Help?

An annuity is a contract that is designed to be a source of income during retirement and the rest of your life. You simply make monthly payments to an insurance company and as such, they agree to help that savings grow until retirement (59 ½) then send you payments.

Owning an annuity plan helps to allay the fear of not having enough savings for the long-term. Not everyone can relay solely on Social Security benefits and the limited amount of savings you currently are banking.

By purchasing an annuity, it will help with periodic payments that can help cover your living costs and serve as a buffer during your golden years. Unless you have wealth like Warren Buffett, than you do not need any annuity benefits.

However, an annuity is a financial complement to any other retirement income sources you may have in place like Social Security and/or pension plans.

Who Issues and How Are Annuities Issued?

The main issuer of annuities are insurance companies. Other financial entities include distributors, mutual fund companies, banks, independent brokers, and financial advisors/agents. You invest in annuities by purchasing premiums. Senior citizens can pay for annuities with funds from an employer-sponsored retirement plan like a 401(k) fund or from their own savings account.

How Annuities Perform

Annuity payout payments are based a person’s age, interest rates, and how much capital is invested. Annuities payout the principal and interest at the end of a specified period. If you choose an option that includes a lifetime income, the payment amount is calculated on the number of months between your current age and your expected life age.

For example, at age 65 and you are in good health, expecting to live until 80, your payment income will be based on 180 months and beyond. In other words, if you can wait until well after retirement age, the larger your monthly payments will be.

When you are ready to receive retirement payments from your annuity, here are your options. You can either take it in a lump sum or set up payments for the rest of your life so that you are receiving a steady stream of income.

Types of Annuities

Annuity plans are available as fixed, variable, and indexed.

• Fixed Annuity

A fixed annuity is best suited for older investors who are close to retirement age. It guarantees a specific amount based on interest rates, each month. The interest rate can be assured for a specific timeframe, such as one year or 10 years. Its returns are between 3%, 10%, or higher depending on the current interest rate.

Fixed annuities are better than purchasing a CD from a bank and it is available with a higher interest. Fixed annuities are provided as a single premium which means that older individuals can purchase as many fixed annuity amounts as they choose.

• Variable Annuity

As an investor, if you choose the variable annuity plan, it means that you are dabbling in the stock market. The premiums being paid to the insurance carrier are in accounts that are tied to bonds, stocks, and/or money market funds.

Variable annuities are a greater risk than a fixed annuity. Also, payouts will be different for investors depending upon how the market is responding. Yes, returns can be greater than a fixed annuity, while principles are at risk.

• Indexed Annuity

Interestingly, an indexed annuity is a cross between the above fixed and variable annuities. It too is tied to the stock market and the S&P 500 index. Your returns can be sheltered, if handled properly, your principle may not become a risk factor. No matter what the market does, your only risk is to the interest earned.

An additional benefit of deferred annuities are it tax category. Investors do not need to report this growing income until they start to receive payments. Please realize however, annuity tax deferral plans work the same way retirement plans work. This is to say that if you take money from your annuity before the specified age, a 10% penalty is taken.

Who Is An Annuity A Good Investment For?

The more common age to invest in annuities is 45 to 65. For an annuity to provide its maximum financial benefits, it should accumulate funds for around 10 years. It also depends on the type of annuity you plan for your retirement age. Annuities are designed to keep our retirement savings secure as an additional source of income.

Also, persons in their 40s or 50s still have enough time invested to handle investment risks and losses. As a young person in their 30s, the earlier you purchase an annuity the more time your premiums can benefit from tax-deferred growth.

If younger persons are contributing to IRAs or 401(k), investing in a tax-deferred annuity may also be a good idea, if they are not carrying other financial burdens like college loans.

Younger persons who wish to purchase annuities, the factors they should consider include being prepared to make regular investment contributions, especially if this product does not always grow? Investing when you are younger gives you more time if there are losses.

As a retirement income, payments can be received monthly, quarterly, annual, or opt for a lump sum. Older aged person who opt for “immediate” annuities is a great option as you approach retirement age.

Those who opt for deferred annuities will earn greater principal. Employer-sponsored annuity plans allow investor to delay payments until after age 65. This helps seniors to reduce their taxes and the payouts can last a lifetime.

Types of Pay Outs

As previously stated, retirees are guaranteed a specific payment amount. If your death occurs before the end of the period, then a beneficiary can receive the remainder payments for your previously specified period.

Other payout payments include the following:

• Lifetime Pay Outs: Your income is only available while you are alive. Payouts can either be a variable or fixed. Whatever you invested is your payout income.

• Joint and Survivor Payments: Your beneficiary will receive your payouts for the rest of their life upon a death, i.e., wife and husband.

• Life With Certainty: Upon retirement, you receive a guaranteed payout for life. Upon the investor’s death, whatever time is left will be received by your beneficiary for the remaining time so named in the contract.

The Top Investment Mistakes of Young People

Young people often have excellent growth opportunities. But it can also be a challenging journey if you do not know the best ways to make and invest money. There are obvious mistakes that you should avoid if you want to experience a change in your life.

Youthfulness will not last for life. So, ensure you utilize every moment to achieve your life goals and ambitions. However, you cannot make it if you keep repeating avoidable mistakes, as listed below.

Not Making Inquiries

As a young person, you’re just starting life, and it’s apparent that you do not know much about investments. If you think you know much, you may make mistakes that could be hard for you to recover.

That is why it is crucial to ask enough questions before you start any investments. Even if you plan to apply the skills you studied in school, it could still be challenging because things are different on the ground.

Market trends change often, stock prices rise and fall frequently, and you may not be aware of all this. Therefore, gather as much information as possible before you start investing.

Failure to Create Financial Goals

Everything revolves around money when you plan to invest. The mistake you could make is to start investing without setting clear financial goals. This is a costly mistake that can cripple your investment and lead to losses within a short while.

Ensure you are responsible for your finances by setting both long-term and short-term investment goals. This is an excellent step to help you know the investment to make and what you aim to achieve. Goals make you a responsible investor whether you plan to buy a home, save money or retire early.

Living Beyond Your Budget

Living a luxurious life is the dream of every human being. People want to live a high-end life, which means spending a lot of money to finance living standards. As a young person, avoid making this mistake.

• Always strive to leave within your means even when you think your peers live a better life than you.
• Take control of your money by devising a proper money-management plan.
• Cut off certain expenses that add little value or do not add value to your life at all.
• Analyze your costs against the income and ensure you cut off anything that could drain your finances.
• Give every dollar a valuable job, and don’t forget to allocate some to savings accounts.

Even if you earn little, make it a habit to spend your money wisely. You may not have the right budgeting skills but devise ways to spend less than you earn, save and invest more. Ensure you stick to the routine. It may be challenging, but you will adjust if you remain focused.

Buying a Home with no Plan

Most young people get easily allured to buy new homes. While this can be an outstanding achievement that comes with a sense of fulfillment, you should think twice before you rush to buy a home.

Houses on sale will always be there regardless of the time and seasons. So, it would be best to avoid rushing to purchase one until you have sustainable finances. Whether you plan to take a mortgage or buy a home on cash, you might end up in financial hardships in the long run.

So, if you aren’t financially fit, avoid purchasing a home. Save and invest more money until you feel you’re ready to become a homeowner.

Remember, it is not only about taking a mortgage. Homeownership comes with lots of responsibilities. Your home will need frequent repairs and maintenance, insurance, tax payments, among other liabilities.

Investing with no Prior Knowledge

Sometimes, you may want to invest because your friend, family, or colleague made the same investment. In short, you’re investing in something you do not understand.

While it may be easy to set up the investment, you might get stuck along the way since you will not know how to manage the investment. This could be tempting, and remember, your family, friends, and colleagues will not manage it for you.

Therefore, before you risk your resources in something you hardly know, ensure you take ample time, acquire knowledge, learn the risks involved and determine what you want to achieve.

If you do not have anyone to hold your hand, you can use Robo-advisors to help you achieve your investment needs.

Borrowing and spending too Much Money on a Wedding

Borrowing money for your wedding and spending too much of it can be a risky step to take. While you may want your wedding to be the talk for the day, it is wise to spend what you know won’t hurt.

Unfortunately, some young people borrow money for the wedding without knowing how to pay it back. This leaves a significant financial gap that you may not be able to close within the expected timelines. So, if you plan to wed, don’t make it so lavish.

You can still enjoy your wedding without spending a lot of money on it. You do not want to end your big day with frustrations due to accrued debts. Instead of spending a lot of money on a lavish wedding, consider holding your ceremony at the City Hall and close the day with a casual party.

Irresponsible Use of Credit Cards

A credit card has a lot to offer if you maintain it well. This may not be possible if you use it irresponsibly. You should do everything possible to ensure you do not get into debt because this can cripple your financial ambitions.

In this case, ensure you maintain a clean history of your credit card by paying your bills on time, clearing debts, and avoid opening so many accounts. Instead, commit to a clean credit history that will allow you to secure loans in the future and invest in your preferred business.

Lenders often look at your credit history before approving your loan. You do not want to generate significant investment ideas and get stuck along the way because you couldn’t secure a loan.

Overlooking Health Insurance

Ignoring health insurance coverage can land you in financial hardships in the future. It is easy to think that you will not fall sick. But this is far from the truth. No matter how healthy you think you are, getting health insurance can be a significant investment.

Things happen, and you may fall victim to circumstances when you list expect. If you fall sick without a medical cover, you will spend a lot of money on treatment, which can adversely affect your finances.

Sometimes, you may not even have the money for treatment, leading to riskier health conditions that could cripple your life forever. Therefore, consider acquiring health insurance. It may be expensive, but it can save you lots of money in the future.

The Bottom Line

There is no better way to grow your finances than remaining dedicated to your goals and aspirations. You can gain financial freedom quickly if you apply the tips above. This may not be easy since most young people want to live a luxurious life in the early years. But try all you can to remain disciplined with your investment goals if you want to have a better future.

Investment Portfolio Thoughts

If you are wondering about what types of thoughts a “contrarian” investor might have, think in exact terms of the word “contrary.” Basically, if you say “pull,” I’m gonna “push.” If you say “yes,” I’m going to say “no.”

So, carry that idea into trading. Does the local cable network investment guy say “buy?” If so, I, the contrarian, am bound to “sell.”

Anyway, the first time I remember thinking that some people would go “against the tide” when it comes to money and investing, it was during the old feel-good movie “It’s a Wonderful Life,” where James Stewart’s character, George Bailey, is fending off a bank run just as the Great Depression has the nation in its grips. His nemesis, Mr. Potter, the mean and greedy banker who pretty much runs the town, is trying to destroy the Bailey Savings & Loan (which is the idealistic company trying to help the community).

During a point in the movie, the community is in a panic, and everyone is trying to sell their shares and cash out. George Bailey urges them not to do this. “Don’t you see what’s happening? Potter isn’t selling. Potter’s buying! And why? Because we’re panicky and he’s not. That’s why. He’s picking up some bargains…” etc. Of course it all comes out okay in the end (except that at the end of the movie, Mr. Potter is not held accountable for his ickyness, but that’s another topic altogether).

But, while that’s not really a true or even good example of contrarian investing, it struck me early on that there were people out there who were not afraid to act completely against the prevailing opinion. Yes, it was a fictional movie, but it spurred my thought process.

So, my warning of course would be to not just go against the advice of a professional willy nilly without learning first what you are doing! Education when it comes to investing is critical. With that said, let’s educate ourselves!