© Provided by The Motley FoolAn older couple holding hands as they laugh while bouncing on a trampoline feeling happy about earning dividends from their ASX shares.© Provided by The Motley FoolAn older couple holding hands as they laugh while bouncing on a trampoline feeling happy about earning dividends from their ASX shares.
Your 50s are an exciting decade that can house both contentedness and ambition. You’ve likely ticked many items off your bucket list; celebrated anniversaries, birthdays, and major achievements; and now, you’ve probably got retirement in your sights. That’s exactly why your 50s might be the best time to reassess your investments.
Here are the four best investments I think could benefit Australians in their 50s.
It's probably no surprise that I’d recommend Aussies in their 50s invest in ASX shares – I am an avid stock market fan, after all. However, a wise person in their 50s might choose to adjust their investing tactics.
With a little over a decade to go until reaching retirement age, growth stocks and risky small caps might no longer make attractive assets.
Rather, the more important objective might be protecting your wealth.
To do so, I would recommend homing in on diversification and safer ASX shares, like blue chips and defensive stocks.
One might also choose to shore up their shares-to-bonds ratio or focus on building a passive income from dividends.
Property is also often seen as one of the best investments a person can make. And your 50s can be a great time to double down on paying off your mortgage if you have one.
Many Aussies will find their financial position shift considerably during their 50s.
Those with kids might find their littluns have grown up. They might even be bringing in their own income and leaving the nest.
Of course, that brings the possibility of downsizing and, in turn, binning or shrinking the mortgage. It could also see extra cash freed up, which could feasibly be funnelled into paying down a mortgage prior to retirement.
Speaking of retirement, your 50s might be a good time to turn your attention to your superannuation balance.
Research by Findex found most Aussies are worried about not having enough super to fund their retirement.
Perhaps one could sink the spare cash born from paying off their mortgage into their superannuation account. Doing so can also bring notable tax benefits.
Finally, all the above investments are – of course – general in nature and not intended as personal investment advice.
Instead, an Aussie concerned about their financial future might find value in accessing advice from a professional.
While the initial outlay might seem extravagant, the value and peace of mind professional advice can provide are often well worth the expense.
Thus, a person in their 50s might find it the best investment they can make.
The post The 4 best investments Aussies in their 50s can make appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.