Financial planning is as important to women as it is for men. Whether you are married or not, you have to take charge of your finances. You’ve worked so long and come so far in life. You would have survived all the initial trials and tribulations of a tough work life, like hunting for a new job on relocating to a new place after getting married, getting back to work after a maternity leave and so on. Single women have their own issues like no financial security in case of a job loss, repayment of loans, gender pay gap, among others.
Let’s face it. Old age means a higher risk of losing your job, but it can also mean peak earning years. Now that you are in the 50s, you must have paid off most of those fat loans and made thick savings too. But, that’s not the end of it. Come midlife, you will have different kinds of challenges on your plate. You might still have the responsibility of paying for children’s higher education. You might also have to meet their wedding expenses. Or you might want to make investments in their names.
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Meeting all these expenses requires proper financial planning. Also, do not as always forget yourself, while catering to your family. You don’t want to go broke before your retirement. Now is the time to cater to your own needs. Why depend on others in retirement when you have never done so before?
Let us see how you can plan for finances in your 50s to keep money troubles away.
Women spend time taking care of their families. But in the meantime, they often forget to take care of themselves. When you are young, it’s not very difficult to take care of your health. Once old age creeps in, you will have to set time aside to take care of your health. If you are not convinced, read this:
Medical inflation is increasing @ 20% year on year. Just think how much money an unexpected hospitalization can cost you? Out of Pocket expenses can disrupt your budget. Therefore, 50s are the best time to enhance basic Health Insurance plans. Add riders and top-up plans if required. Engage yourself in physical activates like yoga, walking, and so on to stay fit.
Why avail life insurance? Simple, because you care for your loved ones and want them to be secure even in your absence. The death benefit from a life insurance plan comes to their rescue in times of need. Looking at the way inflation is currently increasing, things are bound to get expensive over time. The sum assured might not be on par with inflation. Therefore, it is wise to enhance the sum insured on your life insurance policy.
Legal battles and discords over property inheritance between family members are very common. Why? Because of the lack of a clear and definite WILL. Therefore, it is wise to draw a clear and definite WILL, clearly defining who gets how much.
Take the help of a lawyer and avoid a hand-written WILL to reduce any chance of a misunderstanding.
You work all life for retirement, so never compromise when it comes to saving for your retirement. Review your retirement fund. Don’t forget to factor inflation while investing in a retirement fund. Use the extra money that you receive in the form of a bonus or a hike to pump your retirement savings.
You still have time ahead, so start making sound investment decisions. Sell off poor performing investments and invest in well-performing stocks or mutual funds. You may take professional advice if required.
When you are looking at the second half of your life which is your future, make sure you don’t leave some things in the past. While you recall your younger days with a cup of tea on a vacation and smile and feel proud of them, you should also consider paying off your loans.
Never let debts make your retirement days look ugly. Draft a plan to repay your debts well in time. If at all you feel paying these loans are too much for you, then don’t shy away. Ask your kids to help you by either pitching in or taking up half of the responsibility. After all that you have done for them, they should not turn you down.
Be Wise, Get Rich.
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