For many people, it is an idea too scary to contemplate. For others, it's reality. Being in your 50s and having no meaningful savings is certainly a frightening and serious situation, but by no means is it hopeless. People are living longer and in better health than ever before and it is never really too late to start making positive moves. (These retirement income distribution methods are all viable; the one you choose will depend on your personal circumstances. Learn more, in 3 Ways To Make Your Retirement Funds Last.)
Fix 'er Up
First, figure out how you got to be 50 and broke and how you can prevent that from continuing. In some cases, it could have been crippling medical or legal costs that were all but impossible to prevent. In other cases, it may have been major investment losses incurred in the stock market or a result of tying a large amount of money into corporate options and stock that are now worth much less.
Excessive generosity (like paying for college and weddings) may also have depleted the coffers, or low savings may be a product of excessive spending. Some people never think to pay themselves first (in the form of savings) and instead focus on having a new car every few years, top-of-the-line electronics, season tickets to professional sports and so on.
If the cause was out of your control, simply shift your focus to rebuilding your savings and do not dwell on it. But if the cause was controllable or avoidable, make sure to keep the lessons in mind. Sharp stock market losses may indicate you take on too much risk or do not diversify enough, while excessive spending suggests the need for stronger prioritization and discipline. (They may not be sexy, but bonds offer undeniable benefits to investors. Learn more, in Savings Bonds For Income And Safety.)
For the full column, please continue on to:
http://financialedge.investopedia.com/financial-edge/0610/50-Years-Old-And-Broke-Now-What.aspx
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