Part of reassessing priorities is ensuring you have a plan in place. People should have a retirement plan when they are significantly younger than 50, yet EBRI finds that only 42% of workers of all ages have a retirement plan.
If, at the age of 50, people find themselves inadequately prepared for their dream retirement, they should start by looking at the future, advises Setzfand. “The first thing people should do is consider, ‘What do I want to do with the rest of my life?’” The answer to that question will help decide what actions need to be taken, Setzfand explains. Before moving forward, it is important to ask such questions as “Do I really need that second house in Florida?” or “Can I [afford to] start a trust fund for my grandkids?”
People need to consider how much they are willing and able to fund their children’s college education. Setzfand notes that many parents in their 50s will foot most or all of their children’s college bill to make sure their children don’t end up with debt early in life. However, she cautions people to be careful to make sure they have enough money to build and sustain their own retirement nest egg. After all, you can’t borrow to fund your golden years.
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