As people move through different stages of life, there are new financial opportunities — and potential pitfalls — around every corner. Have you made any of these mistakes?
Your 50s and 60s
- Raiding your home equity or retirement fund, which can prolong your debt and/or reduce your nest egg.
- Not quantifying your expected retirement income. You should know how much money you (and your spouse, if applicable) can expect from retirement accounts, pension income (if any) and Social Security.
- Co-signing loans for adult children. (This puts you 100% on the hook if your child can’t pay!)
- Living an unhealthy lifestyle, which may lead to high healthcare costs in the future.
- Trying to keep up with the Joneses. Remember: Appearances can be deceptive. Don't spend money you don't have trying to keep up with others.
- Funding college over retirement. If you have limited funds, consider setting aside a portion for college while earmarking the majority for retirement.
- Not having a will or an advance medical directive. These documents can help your loved ones immensely if something unexpected should happen to you.
- Being house poor. Think twice about buying a house you can't afford, and build in some wiggle room in case you experience a layoff or choose to leave the workforce to raise a family.
- Not saving for retirement. It’s essential to start saving for retirement now. Wait much longer, and it can be very hard to catch up.
- Not protecting yourself with life and disability insurance. Life is unpredictable. Consider what would happen if one day you were unable to work and earn a paycheck.
- Living beyond your means. It's tempting to splurge on gadgets, entertainment and travel, but if you can't pay for most of your wants up front, then you need to rein in your lifestyle.
- Not paying yourself first. Save a portion of every paycheck first and then spend what's left over, not the other way around. (And why not start saving for retirement, too?)
- Being financially illiterate. Learn as much as you can about saving, budgeting and investing now and you could benefit from it for the rest of your life.
Contact a Financial Advisor
To learn more, stop by one of our retirement income planning workshops, or call to set up a complimentary, no-obligation financial review.
CUSO Financial Services, L.P.* P: (610) 821-2469 • F: (610) 821-3043 Jmorrow.CFSinvest@firstcomcu.org
CUSO Financial Services, L.P.* P: (610) 821-2430 Bsmith.CFSinvest@firstcomcu.org
CUSO Financial Services, L.P.* P: (610) 821-2465 • F: (610) 398-8546 Scressman.CFSinvest@firstcomcu.org
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/ SIPC) and Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
CFS and its representatives do not offer tax advice. For such advice, please contact a tax professional.