5 Amazing Tips for Investing after Age 50

  1. Saving $7,000 instead of $6,000 in an IRA from age 50 to 65 and earning a 6% average annual return can add nearly $24,000 to your savings by retirement.

  2. Max out your 401(k) at work with that extra $6,500 a year and you’ll end up with about $160,000 more by retirement, versus what you’d have if you didn’t make the catch-up contributions.

  3. Consider that fund manager Vanguard has 78% of assets in its 2035 target-date retirement fund invested in stocks, with the remaining 22% in bonds.

  4. Target-date funds automatically adjust the investment mix of stocks and bonds based on what’s appropriate for someone who plans to retire within a specified year.

  5. But the Roth is still a valuable retirement investment tool for midlife savers.

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