| Last time, we looked at financial planning for people in | | | | Don't cripple your children. Give them a foundation. Let |
| their 20s and 30s. Here are some tips to help you get | | | | them move into adulthood with a sense of |
| on the right track in your 40s and 50s. | | | | responsibility. |
| The later family years - 40s | | | | Almost empty nesters - 50s |
| In our 40s, things won't change much. We still need to | | | | By the time we reach our 50s, many families are |
| be aware of our spending. We should be avoiding and | | | | watching children go off to college, or move out on |
| eliminating excessive debt, and maximizing our | | | | their own. We want to make sure that we review our |
| retirement savings. Reevaluate all financial strategies to | | | | finances again to see that all needs are being met. |
| make sure that they are still meeting the family's | | | | Look at your retirement accounts to make sure that |
| needs. | | | | they are not too aggressive. As you get closer to |
| Most of the financial concerns are still related to family, | | | | retirement, you want to shift toward being a little more |
| but the children are older. With college around the | | | | conservative. |
| corner, college funding becomes an important matter. | | | | In reviewing the retirement accounts, ask yourself if |
| Although I've had many teens get upset with me over | | | | you are on track toward the goal. Do you need to |
| my advice to their parents, please hear me out. You | | | | save more to help you become financially ready to |
| are still free to make whatever decision you choose. I | | | | retire? |
| always tell parents not to sacrifice their comfort in | | | | Reexamine life insurance policies. With retirement |
| retirement in order to put their children through school. | | | | nearby, the children out of the house and the |
| I've heard several horror stories of parents refinancing | | | | mortgage balance reduced, you may be able to |
| their homes or foregoing retirement savings to pay for | | | | reduce your coverage. |
| college, only to find out that their child is no longer | | | | You could also consider moving into a smaller home |
| interested in completing a degree. | | | | after retirement. Many retirees downsize to not only |
| While my parents did help me out financially, I did not | | | | cut back on expenses but also to increase funds |
| get a free ride in college. I had a part-time job to | | | | available in retirement. |
| supplement other monies. Since I was helping to foot | | | | Next time, we will look at the planning for ages 60 and |
| the bill, I had a much greater appreciation for my | | | | beyond. This group should be most concerned with the |
| classes. I wanted to make sure that I did well and that I | | | | retirement years. Remember, the sooner you start the |
| got my money's worth. | | | | better, but it's never too late. |