At 50, you have 15 years until retirement. The catch-up contributions are your secret weapon — you can put $40,000+ per year into tax-advantaged accounts.
Here’s how to build $1M+ before retirement.
Catch-Up Contributions (Age 50+)
This is your biggest advantage. The IRS lets you save extra:
| Account | Standard | Catch-Up | Total |
|---|---|---|---|
| 401(k) | $23,500 | $7,500 | $31,000 |
| Roth IRA | $7,000 | $1,000 | $8,000 |
| HSA | $8,300 | $1,000 | $9,300 |
| Total | $38,800 | $9,500 | $48,300/year |
That’s $4,025/month in tax-advantaged savings.
Your 50s Portfolio
Balanced Income (Age 50-55)
| Asset | Allocation | Fund |
|---|---|---|
| U.S. Stocks | 50% | VTI |
| International | 10% | VXUS |
| Bonds | 25% | BND |
| TIPS | 10% | SCHP |
| REITs | 5% | VNQ |
Expected return: 6-8%/year
15-Year Projections
| Starting Amount | Monthly | Return | Value at 65 |
|---|---|---|---|
| $200,000 | $2,000 | 7% | $1,200,000 |
| $100,000 | $3,000 | 7% | $1,100,000 |
| $50,000 | $3,500 | 7% | $1,000,000 |
How Much You Need
| Monthly Need | Portfolio Required (4% Rule) |
|---|---|
| $3,000/month | $900,000 |
| $4,000/month | $1,200,000 |
| $5,000/month | $1,500,000 |
| $6,000/month | $1,800,000 |
Common 50s Mistakes
| Mistake | Why It Hurts |
|---|---|
| Being too conservative | 15 years is still long-term |
| Not using catch-up | Missing $9,500/year |
| Panicking about age | Action beats worry |
| Paying for kids’ weddings | Your retirement first |
| Ignoring healthcare costs | Budget for HSA contributions |