Investing in your 50s? Here's how you should invest

Justin lived with his wife in one of the top locality of the city. He has a good job in a multi-national company that pays him quite well. He also has two children who are still in their high school. Life has granted him everything he wished for. Yet, he has been having sleepless nights since a week. He came to realize that although he is earning good, it would only be for a decade more. Getting caught in the race of making the present life comfortable, he somewhat neglected his future. His retirement savings were nil and investments would barely manage to get him a meal twice a day. Was he scared? You bet. Could he do anything about it? Yes!

The dawn of the fifth decade of a man's life is a very curious one. He is heading towards retirement, while still having much of the family's responsibility balanced on his shoulders. It is this time when you stand at the crossroad; one suggesting 'saving up for the future', while the other suggests 'investing for the future.' Certainly, an avid investor would be inclined to opt for the latter. If you are stuck at one such crossroad, this might help you choose the right path.

You are never too old to consider investing in anything; ranging from stocks and mutual funds to real estate and businesses.

Roadmap to investment

1: Set your priorities right

The first and foremost idea is to identify your priorities. Consider what are your present expenses and potential expenses that might come up. If you have some hobbies, check about how expensive that could be. You might not have a job so figure out what are your substitute income source to meet these priorities. Be wise to choose the right one for yourself. For instance, if you plan to retire by 58, it will be wiser to choose an investment option that would give back dividends once you retire.

2: A keen observation of surrounding

You need to have a keen eye on your surrounding activities. The slightest of physical/natural changes in the society sends ripples through the investment market. Investing in a water bottle manufacturing company that sells water in a city, which has recently received abundant rainfall would be a dud idea. Research well before you invest. Pay heed to the advice of financial experts and analysts who can help you with the right investment options.

3: The Retirement Angle

Retirement is inevitable. But what you can avoid is a retired life filled with stress. Your investments mustn't be at the expense of a comfortable retired life. It will certainly not be wise to take a gamble and end up being debt ridden. You can approach professional financial planners who can help you with this. They could help you with goal-based investing that can help you reach fixed targets post retirement.

4: Review your lifestyle and pay attention to taxes

Since retirement would give you a lot of free time at hand, you might want to pursue your passions as well. Be it travelling, dining out or such other recreational activities. You might want to enjoy them without having a dip in your retirement savings. So, consider this when you build your retirement fund. Another thing to focus on is your tax outgo. Since you might be in the peak of your career, you would be in a higher tax bracket. Ensure that your investments then focus on tax-saving options. This could then contribute to your retirement fund.

In a nutshell

You stop growing when you stop learning. Investment is not that difficult after all. You just need to plan it in a way that it helps you achieve your goals. You can take professional help also when necessary. Ensure you have a stock-bond portfolio that could provide both stability as well as good returns for your investment.