Your 50’s are kind of exciting because you are getting closer to the age of retirement. You are comfortable with yourself and the way your life is.
On the other hand, the ’50s can make you start to feel invincible. Your lifestyle choices may not have come home to roost just yet and you might think you don’t really have to worry about the future. You consider taking risks with your finances.
Financial Mistakes in Your 50’s
Before you make some of the most common financial mistakes in your 50’s, why not see how those mistakes might impact your life?
1. You want to help your children with educational costs. It’s admirable of you to want to make sure that your children or grandchildren can afford to go to college, but there are plenty of ways for them to do that through grants, scholarships, and some wise financial maneuvers of their own. Don’t make the mistake of taking on loans so they don’t have to.
2. You make no changes to your lifestyle. Worse than making drastic financial decisions that could cost more than you can afford to lose is the choice to make no financial decisions at all. Review your diet and exercise plan. Your needs change as you age and if you don’t meet them, you will face more than just harsh financial consequences in the form of expensive healthcare.
3. You didn’t plan for long term care. Who is going to manage your assets if something happens to you? If you get sick, will your bills get paid? Will you have a place to live? Now is the time to plan ahead for these situations so that you don’t have to worry about your assets and you aren’t a burden to a loved one either.
4. Did you create a will? As a responsible parent, make sure your funeral expenses are paid and your will is drawn up. When the time comes, this will allow your children to deal with their emotions rather than trying to figure out how to pay for things or divide things up. If you live alone and you only have one adult child, you may even want to put your home in his or her name now to avoid any potential problems later. This is also a good time to create a trust for loved ones so they have some cushion after you pass.