Once you turn 50, you’ve reached a pretty big milestone. In your fifties, retirement is closer than ever. You’re likely secure in your home and job and it’s important to continue successfully managing your money. You may have children who are in or graduating from college and you need to decide how much or how long you’ll financially support them. There are a lot of large decisions looming on the horizon, so it’s important to have a plan as you approach them.
Don’t over-support your kids
If you have children, this issue will be a large one. It’s understandable that you want to continue providing for your children, but you should not go above your means. This article discusses how you can encourage your children to become financially independent. Don’t pay for their schooling, loans, rent, and other expenses if you cannot afford it. Learn where to draw the line so you don’t hurt your retirement or personal finances.
Focus on retirement
Retirement is closer and is no longer the far-off dream of your 30s. Though you’ve been putting money toward it for the last few decades, now is the time to start putting even more money away. Make sure your account is the best it can be and look into any investments you have to check that they’re doing well. It’s a good idea to sit down and evaluate what you’d be living on in retirement and what you currently have in your account so you can decide if you need to make any changes.
Pay off your mortgage
Your fifties are the ideal time to fully pay off your mortgage so you can enjoy the home you’ve been living in once you retire. Make the highest payments you can afford and look into any renovations you need to do. When you’re retired, it’ll be more difficult to find the money to make necessary repairs or updates, so take care of it now.
You’ve been working since your twenties and are looking forward to retirement, but don’t let this mood affect how you’re doing now. Staying motivated at your job will guarantee that you’ll have that job until you choose to retire and you’ll also be more on top of all your financial concerns if you approach them with motivation and refuse to feel discouraged or apathetic.
Help out your parents
If your parents are still living, they’re probably well into retirement and may require some of your assistance. It’s important to take care of your parents at this point of their lives, just like it’ll be important for your kids to help you out if you need it once you’re older. While financial assistance can be helpful, you could also help out by managing their finances and just spending lots of time with them.
Look into long-term care insurance
Finally, you should begin to think about the future of your health. While you may be healthy for a long time, it’s important to be prepared in case you or your spouse experiences a serious illness or disability that requires constant care. Look into options for this insurance and then purchase what seems best for you in your fifties while costs will still be relatively low.