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Avoid These 3 Money Mistakes After 50

Avoid These 3 Money Mistakes After 50

December 19, 2023

If you're approaching retirement, you're probably already familiar with some common steps to help you save money, including contributing to your retirement savings plans and avoiding early withdrawals or overly conservative investing strategies. In addition to what you should be doing, here are three moves to avoid.

Taking a Set-it-and-Forget-it Approach to Retirement Planning

Retirement planning isn’t a one-time event or static plan. Believing that your retirement plan doesn’t need to be reviewed or updated can be a costly miscalculation. Taking the time to review projections, progress toward your goals, strategies and even your goals, themselves, can help you stay on track for building the future you want.

What happens when your portfolio isn't as retirement-ready as you’d like? Here are some steps you can take:

  • Open an individual retirement account (IRA) if you don't have a retirement plan through work.
  • Reduce excess spending in order to save more.
    Contribute the maximum amount to your retirement plan, if possible.
  • Budget according to your retirement lifestyle goals, including travel and spending money on loved ones.
  • Consider whether moving to a lower cost of living area might make financial sense.

Investing in the Next Generation Instead of Yourself

Higher education is expensive. Helping the next generation is a noble aspiration, but it shouldn’t come at the expense of your future financial wellness. Withdrawing from your 401(k) without penalty to help cover a college education for someone you know might be tempting, but will you have sufficient funds and time to get your savings back on track?

Not Factoring in the Cost of Aging Parents

Research shows out-of-pocket expenses to care for an aging parent can exceed $140,000 from age 65 until death.1 Even if your parents are relatively healthy now, unexpected falls, illnesses and injuries can happen as they age. Having resources and a financial plan in order can reduce some of the financial strain of caring for an elderly parent.

If anything has changed that could impact the strategy we have set in place, contact the office and we can review if any adjustments are needed.

1) Favreault, Melissa and Dey, Judith. "Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief." Office of the Assistant Secretary for Planning and Evaluation, 30 June 2015,https://aspe.hhs.gov/reports/long-term-services-supports-older-americans-risks-financing-research-brief-0.

This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sourcesbelieved to be providing accurate information.