So you’ve reached a certain age in your life, probably around 40-60, and you think you know it all when it comes to your financial planning. Unfortunately, many middle-aged people fall prey to the same mistakes on a consistent basis. Following these tenets can help you to secure your assets:
Stay away from increased risk: You might fall behind in your savings. That’s OK. Just be sure to keep your portfolio consistent, as too much volatility may be a bad thing. You don’t want to lose what you’ve taken so long to build up over the years- play it safe.
Don’t just build your wealth- protect it: People all too often focus on moving their wealth up, up, up and fail to play defense with their savings. Being fiscally conservative is a great way to gradually increase your funds, while minimizing possible risk.
Prioritize your own savings over everything else: It may be tempting to start investing full-speed ahead in college funds for your children. But keep in mind that college has scholarships and financial aid- your retirement fund does not.
Don’t assume your peak earning years are ahead: Hope is a wonderful emotion, but it is best to be realistic when considering your future income. Don’t overestimate your earnings and end up in a financial rut because of it.