How To Make Sure You Are in the Financial Top 5% in Your 50s
Written by
Cindy Lamothe
Edited by
Levi Leidy
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Reaching your 50s often brings a mix of financial clarity and urgency. You’ve likely built a solid foundation — whether through a career, investments or homeownership — but now the question becomes: Am I where I should be? More specifically, how do I make sure I’m among the top 5% financially in this next chapter of life?
The good news is that it’s not about chasing overnight success or making risky moves. It’s about aligning your habits, mindset and strategy with what actually works.
Here are some key steps that separate the financially thriving from the financially surviving, and how you can put yourself firmly in the former camp, no matter where you’re starting from.
It’s Not Just About Income — Saving and Investing Is Key
From his experience working with high-net-worth clients, Andrew Lokenauth, money expert and owner of BeFluentInFinance, said the top 5% of people in their 50s have a household income of roughly $350,000 or more annually and a net worth $4 million or more.
“But here’s the thing — it’s not just about income. I’ve seen plenty of high earners who still aren’t building real wealth,” he said.
The biggest factor isn’t just making more money — it’s about aggressive saving and smart investing starting early.
“I had this client who started putting away 30% of his income in his late 20s — way more than the standard 10%-15% most financial advisors suggest. By his early 50s, he’d built a $3.5 million portfolio, even though he never made more than $200K annually.”
Lokenauth also noted that the investment strategy that’s worked best for his clients is pretty straightforward. He typically recommends a mix of 70% stocks and 30% bonds, focusing heavily on low-cost index funds.
“This approach has consistently delivered 8%-10% average annual returns over the long term. And here’s something most people don’t realize: The real growth happens through compound interest in years 15-25.”
Real Estate Is Another Major Wealth Builder
Lokenauth also noted that real estate has been another major wealth builder for his top 5% clients. One couple he worked with bought their first rental property at 35, reinvested all the profits and now own eight properties generating $25,000-plus monthly in passive income.
“They’re living proof that strategic leverage can accelerate wealth building,” he said.
According to the U.S. Federal Reserve’s 2020 Survey of Consumer Finances, real estate comprises about 30% of American families’ total wealth
Robert Grunnah, who specializes in residential real estate investment and owns Austin House Buyer, shared the same view. Throughout his career, he’s seen many clients turn their finances around by using real estate as their primary wealth-building vehicle, rather than conventional retirement accounts.
“Real estate investing becomes the great equalizer for professionals who begin with smaller salaries but grasp leverage and timing in the market,” he said. “I’ve seen teachers, bureaucrats and small business owners create seven-figure portfolios by consistently buying rental properties every few years, reinvesting their cash flow and profiting from appreciation over time. The secret is making real estate investing a business, not a hobby.”
Final Thoughts
According to Grunnah, people who hit the financial top 5% by the age of 50 share three habits: They spend less than they make (no matter how much their income increases), they invest heavily in assets that appreciate and not depreciate and they build multiple income streams that do not need their direct time effort.
“They know that building wealth is a requirement of sacrifice during earning years, but it is liberating in retirement years when most people experience financial hardship.”
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