Personal Finance
If you're over 50 years old and have a family, this is what should absolutely already be checked off on your financial checklist
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While there’s a certain sense of freedom when it’s just you looking to make a living and survive, everything changes after you have a family. Not only does your sense of responsibility grow, but so does your desire to earn and make a living to make a better life for those in your immediate circle. This desire only grows with age, so by age 50, you should have a strong financial checklist.
As we start the later stages of life, financial security becomes more important than ever. Protecting your assets or being prepared for the unexpected can make all the difference. If you focus on retirement and providing for your family, having a robust financial plan will make everyone, including yourself, feel more secure about the future.
For most people, having a comprehensive estate plan should be automatic before turning 50, and it’s one of the first things you should mark on your checklist. Having a will, a trust for your spouse and children, and a living will for any healthcare directives should be no-brainers. Work with a lawyer to create a power of attorney and make a concrete decision on who will make medical decisions for you in the event of something terrible.
By the time you turn 50, you should already be well into planning for retirement. The hope is that you have already been contributing to a 401K with employer matching or a pension account. Alternatively, you may contribute to an IRA, but any of these should be marked off a financial checklist well before you turn 50. Working with a financial advisor to understand your situation, including social security, will help you know what kind of lifestyle you will have in retirement.
Yet another checklist item you should take care of well before you turn 50 is ensuring your family’s well-being with a life insurance policy. I can speak from experience when I say that I had my policy in place as soon as my first child was born, two decades before turning 50. I would encourage everyone to follow the same path so this box is checked off. The same can be said for health insurance, through an employer or otherwise, to make sure you are well covered in case of long-term medical expenses.
This is tough because nobody wants to plan for the eventuality they could require long-term care. Unfortunately, it’s a common situation, so you must consider any financial risks incurred while navigating a nursing home, in-home care, or assisted living. If you are not careful, these costs can quickly add up and drain you financially. This is one of the conversations you should have with a financial advisor to prepare for all eventualities, as difficult as it might be to discuss.
One of the most important and difficult conversations is to be open and honest about your financial and health plans with your family. While you’ve likely discussed this with a spouse or partner, at 50, your children should be of age to understand your wishes and some of the basics of estate planning. The same can be said for life insurance and power of attorney wishes. These are difficult conversations, but they are necessary before turning 50.
You have one priority: protecting your financial future before you turn 50. As a reminder, it’s not just about you but also your family and making sure they feel comfortable with long-term estate planning, retirement values, and insurance policies. By staying on top of these checklist items, you’ll feel prepared for the future, no matter what it might look like.
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