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As you already know, life has a way of changing when you’re in your fifties. It doesn’t matter if you’re in your late forties or already enjoying these wonderful years of your life, change is the one thing that’s consistent. Now is the time of your life when you have to start thinking about your financial future. Retirement is right around the corner, and you’ve got to prepare yourself for it. You have to get your financial ducks in a row to be able to survive retirement. No one is ever going to say it’s easy to make ends meet when you’re on a fixed budget. But, it’s a whole lot easier if you plan and make a few sacrifices if they’re necessary. Read this one financial planning after 50 for a comfortable and fun filled happy life for a better planning of your financial future.
You can’t save for retirement if you’re in debt. That doesn’t make any sense at all. The interest that you’re paying on your debt will off balance anything you save. Set a timeline to pay off everything that you owe. If you owe an enormous amount, then find some way of dealing with it. The debt isn’t going to go away, and you need to do something to stop paying the interest. It’s the interest that’s the worst part of being in debt. You get nothing at all for that interest, and it’s like throwing money out the window.
Any money you put in the bank while still paying interest on the debt is a big mistake. So, pay off your debts and then begin to save money. The first thing you need to do is have some cash on hand for emergencies. How much you need on hand is up for debate. What you’re trying to do here is have some money in case something terrible happens. The big mistake many people make is that they use their credit card to pay for emergencies. The only time that is okay is if you plan on paying it back immediately, so there’s no interest. If that’s the case, then do it. Keep in mind credit cards are usually the most expensive tool to use unless paid fully before the next due date. Part of planning for the future is understanding that you have to be prepared for when bad things happen and what options you have in such a situation.
Some of you may have been investing for quite some time. If so, that’s great. If you haven’t, then there’s no need to panic. Some would say that a person in their 50’s shouldn’t take risks when investing. If you haven’t done any investing, then you’ll have to reap some rewards in the not so distant future. The type of risks you should be taking isn’t investing in penny stocks or anything like that. Sometimes it’s possible to find a company that has been on the rebound after recent difficulties. Chipotle is an excellent example of a company that took a beating and then bounced back. Investing in such stocks can help boost your retirement fund, but be aware of the risk, and not all companies bounce back the way Chipotle did.
Overall its never too late for planning for your later years, though as it works earlier the better. There are many aspects that we will touch in the days to come on planning and executing your finances without having a wizard around. But it’s best to get going as quickly as possible.