Back
davidlerner.com > Financial Literacy  > Financial Preparation in Your 50s

Financial Preparation in Your 50s

If you are in your fifties you will have a lot on your mind, since your sixties are up next and retirement is beginning to loom on the horizon. You need to ask yourself whether you are prepared. What are you going to do to make sure you are safe and secure in your later years? Are you ready for what is to come? The last two years have been challenging to say the least, and the pandemic has put many things in perspective. Getting your priorities straight will assist you in your coming years and guarantee a better life for you. 

The first thing you have to do, if you can, is get debt-free — freeing yourself from the chains of debt is not just a financial wellness scenario, it will affect your overall health as well. 90 percent of Americans reported that money worries have affected their stress level. That’s a huge amount of people worrying about their finances.
 
Nearly 35 percent of Americans report losing sleep to financial stress. If you can’t sleep your body can’t repair itself and if you are not well-rested you can’t concentrate and you make mistakes, and it’s a downward spiral from there on out. 25 percent of Americans have been subjected to even more awful symptoms from money stress. Some people report that they were having nightmares and night terrors. Imagine if you are already not sleeping well, and then when you finally do slip away into dreamland, only to discover that you’ve entered a world of nightmares, well, that’s not a pleasant thought at all. 

One thing you should start doing is putting yourself first. Parents want the best for their kids. However, if you are paying for your kids' lives rather than putting money away for your retirement you may be shooting yourself in the foot, so to speak. There are ways to pay for college and there are loans that can be accessed. There are many other ways to skin a cat. Your kids could go to a local college rather than an out-of-state education facility. The thing you need to concentrate on is the real prospect of your future. 

“Preparing for retirement means you must have a nest egg,” advises David Beckerman, Senior Vice President, Investments at David Lerner Associates. “There should be a careful balance of the money you plan to spend on your children with the investment you need for retirement.”

Research shows that the average parent’s spending per student has gone up recently due to inflation, especially after COVID. Parents spend (with inflation factored in) $284,570 for food, shelter, and other necessities to raise a child through age 17. That’s before you even reach or discuss a college education. The average cost of college in the United States has tripled in 20 years and is $35,720 per student per year
While college may remain a dream for many it might be important to work out what is important to you. There is no wrong answer. If you see it as an investment and want to send your kids to college — then, by all means, do so, but be aware of the costs involved, and make sure you’re investing in your own financial future at the same time. 

 

 

IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

Your Investment Counselor

(ICname)
Skip to content