Financial Planning Tips For Your 40s and 50s

We last looked at financial planning ideas for people inand that I got my money's worth.
their 20s and 30s. Here are some tips to help youDon't cripple your children. Give them a foundation.
make sure that you are on the right track in yourLet them move into adulthood with a sense of
40s and 50s.responsibility.
The later family years - 40sAlmost empty nesters - 50s
In our 40s, things won't change much. We still needBy the time we reach our 50s, many families are
to be aware of our spending. We should be avoidingwatching children go off to college, or move out on
and eliminating excessive debt, and maximizing ourtheir own. We want to make sure that we review
retirement savings. Reevaluate all financial strategiesour finances again to see that all needs are being
to make sure that they are still meeting the family'smet.
needs.Look at your retirement accounts to make sure that
Most of the financial concerns are still related tothey are not too aggressive. As you get closer to
family, but the children are older. With college aroundretirement, you want to shift toward being a little
the corner, college funding becomes an importantmore conservative.
matter.In reviewing the retirement accounts, ask yourself if
Although I've had many teens get upset with meyou are on track toward the goal. Do you need to
over my advice to their parents, please hear me out.save more to help you become financially ready to
You are still free to make whatever decision youretire?
choose. I always tell parents not to sacrifice theirReexamine life insurance policies. With retirement
comfort in retirement in order to put their childrennearby, the children out of the house and the
through school.mortgage balance reduced, you may be able to
I've heard several horror stories of parentsreduce your coverage. You could also consider
refinancing their homes or foregoing retirementmoving into a smaller home after retirement. Many
savings to pay for college, only to find out that theirretirees downsize to cut back on expenses and
child is no longer interested in completing a degree.increase funds available in retirement.
While my parents did help me out financially, I did notNext time, we will look at the planning for ages 60
get a free ride in college. I had a part-time job thatand beyond. This group should be most concerned
supplemented other monies. Since I was helping towith the retirement years. Remember, the sooner
foot the bill, I had a much greater appreciation foryou start the better, but it's never too late.
my classes. I wanted to make sure that I did well