I Asked ChatGPT the Best Habits To Grow Net Worth in My 50s

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If you’re like most people and plan to retire in your 60s, then your 50s are a prime time to prioritize growing your net worth. After all, you’re only about a decade away from leaving the workforce behind and — if all has gone well in your career up until this point — you may even be in some of your highest-earning years.

But what are some habits to start in your 50s to really cause your net worth to skyrocket? According to ChatGPT, these are 10 of the best ones.

Also see five things you must do when your net worth reaches $1 million.

Average Net Worth by Age

Before getting into the artificial intelligence (AI) tool’s response, it might help to know where you stack up financially. Here’s the average net worth across age ranges, as per an Empower survey:

• 20s: $113,645
• 30s: $289,434
• 40s: $708,627
• 50s: $1,285,558
• 60s: $1,512,799
• 70s: $1,420,201
• 80s: $1,325,579
• 90s: $1,203,573.

Your net worth measures the cumulative value of all your assets (like cash, retirement account funds or home equity) minus any liabilities (like credit cards or mortgage loans).

10 Habits To Grow Your Net Worth

Whether your net worth is somewhere near the average or significantly higher (or lower), your 50s are still a good time to build it. As for the habits that’ll help get you there, here’s what ChatGPT provided, as well as why they matter.

Max Out Your Retirement Contributions

You’re eligible for catch-up contributions once you turn 50. This means you can contribute $8,000 (instead of $7,000) to your IRA or $31,000 (instead of $23,500) to your 401(k) or 403(b).

Start these catch-up contributions as soon as you’re 50 and give your accounts an extra decade or so to grow.

Get Rid of High-Interest Debt

Debt, especially high-interest debt, can eat into your retirement funds. ChatGPT suggested getting rid of your high-interest debts in your 50s to protect your net worth. It also suggested refinancing or consolidating to lower your overall interest.

Be aware that these options may result in a fee. For example, refinancing a mortgage may come with a prepayment penalty. Not all debts can be refinanced or consolidated. If you extend your repayment term, you might not save as much as you’d hoped.

Track Your Net Worth

ChatGPT also advised reviewing your net worth every quarter with a tool like Empower. Monitor your progress and make changes to your savings or spending habits as necessary.

Check for any fees or limitations, though. And make sure the tool has the features you need. If you have a complex estate, it might be more beneficial to work with a professional.

Invest Wisely

The AI tool also suggested investing smartly rather than aggressively. Your 50s are a good time to grow your net worth, but you should also protect what you’ve built.

Taking big risks can result in major losses, so keep a diversified portfolio that balances risk and returns. ChatGPT specifically advised going with a more conservative portfolio and avoiding speculative investments.

Minimize Lifestyle Inflation

Don’t wait until you retire to lower expenses. By starting now, the AI tool pointed out, you’ll have more to save. Evaluate your spending habits every year. Cut out things that aren’t worth the cost and save the excess.

Fidelity recommended saving 10 times your pre-retirement income by the time you’re 67.

Make Smart Housing Decisions

According to ChatGPT, housing is the largest expense most people have. If you can, pay off your mortgage in your 50s.

The AI tool also suggested downsizing or moving to a cheaper location. Be sure to consider the emotional impact of leaving your home or community.

Audit Your Insurance and Estate

This habit can protect your nest egg. ChatGPT specifically suggested auditing your insurance policies — health, disability, life and long-term care.

Now’s also a good time to update your will, trust and beneficiaries.

Invest In Yourself

The next best habit is to invest in financial literacy and professional advice. You could read books on investing or retiring. Or you could hire a fee-only fiduciary financial planner to ensure you’re on track.

Make a Plan for Your Retirement Income

Saving and investing are important, but so is knowing how you’re going to start drawing from your accounts. ChatGPT suggested making a plan for things like:

• When you’ll draw from Social Security
• Roth conversions
• Required minimum distributions
• Other withdrawal strategies (like the 4% rule).

Using a retirement calculator or working with a professional could help here.

Regularly Review Your Goals

Last but not least, the AI suggested reassessing your goals as you go. Your 50s can bring a lot of life, health, career and family changes. Keeping up with these changes, and adjusting your goals accordingly, is key to a successful strategy.

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