August 20, 2014 THE VILLADOM TIMES I • Page 9 Important tips for those managing money after 50 Investors know that money manage- ment can be difficult. The ebb and flow of the economy can be similar to a roller coaster, with soaring highs followed by steep drops, and those changes all affect investors’ bottom lines. It is no wonder that many investors over 50 envision the day when they can get off that roller coaster and simply enjoy their money without having to worry about the everyday ups and downs of the market. However, man- aging money after 50 is about more than just reducing risk. Reducing risk as retirement draws near is a sound financial strategy that can safeguard men and women over 50 from the fluctuations of the market. That is true whether investors put their money in stocks, real estate, or other areas that were not immune to the ups and downs of the economy. There are additional steps men and women can take after they turn 50 to ensure their golden years are as enjoyable and financially sound as possible. Prioritize saving for retirement. Men and women over 50 know retire- ment is right around the corner. Despite that, many people over 50 still have not prioritized saving for retirement. It is understandable that other obligations, be it paying kids’ college tuition or provid- ing financial assistance to aging parents, may seem more immediate, but men and women over 50 should recognize that their time to save for retirement is rapidly dwindling. Bills do not magically disap- pear once people retire. In fact, some bills, such as the cost of medical care, are likely to increase. Those who have not already done so should take time to make retire- ment a priority. It might be nice to finance a child’s college education, but that should not be done at the expense of a retirement nest egg. Kids have a lifetime ahead of them to repay college loans, while adults over 50 do not have that much time to save for retirement. Start making decisions. People retire at different times in their lives. Some people want to keep working as long as they are physically and mentally capable of doing so, while others want to reap what their lifetime of hard work has sewn and retire early. Start making decisions about the long-term future. Do you intend to stay in your current home or downsize to a smaller home? Will you stay in your current area or move elsewhere? These decisions require a careful examination of finances. Man- aging money after 50 requires more than just allocating resources. Sound money management after 50 also means making decisions about the future and taking the necessary steps to ensure those decisions come to fruition. Pay down debt. Men and women over 50 are not often associated with debt, but that is a misconception. Thanks in part to the recession that began in 2008 and led to high unemployment, many people in the baby boomer generation, which includes people born between 1946 and 1964, went back to school to make themselves more attractive to prospective employers. While that might have been a sound decision, it left many deeply in debt. According to a 2013 report from the Chronicle of Higher Education, student loan debt is grow- ing fastest among people over 60, and that debt is not inconsequential. In fact, the Federal Reserve Bank of New York reported in 2013 that the average student loan debt of those over the age of 60 who still owe money is more than $19,000, a considerable increase from 2005, when the average debt was $11,000. Men and women over 50 who are still carrying debt should eliminate consumer debt first, as such debt tends to be accompanied by higher interest rates than mortgages and student loan debt. Paying down debt can help reduce stress, improve your quality of life, and free up money for living and recreational expenses during retirement. Examine insurance policies. Now is the time to maximize liability insurance on homeowners’ and auto insurance poli- cies. This ensures the money set aside for retirement will not go to a third party should you be at-fault in an auto accident or if someone suffers an injury at your home. Experts recommend that liability insurance be substantial: as high as twice the net worth of men and women over 50. If it wasn’t already, securing long-term disability insurance should be a priority at 50. A sudden accident or illness that prevents you from working could prove devastating if you do not have disability insurance. Some employers offer long- term disability, though many people are left to secure policies on their own. Tips for relocating (continued from previous page) waiting for inspections, or filling out per- tinent paperwork. With a real estate agent handling these tasks, families can remove some of the stress from the moving pro- cess. Pack children’s rooms last. Young children who see favorite items disap- pearing into bubble wrap and boxes may start to feel anxious. It is not uncommon for preschoolers to act out or experience nightmares during the moving process. Maintain a sense of normalcy in the home as long as possible. Begin by packing non- essential items, only packing kids’ items when the moving date is right around the corner. Let children say good-bye to famil- iar haunts and even to their old home. Plan a school orientation. Take advan- tage of any programs schools offer to acclimate kids to their new environment. Kids often leave friends behind when moving to a new home. The faster they get back to a normal routine, the better it will be for them. Schools are where children will make new friends and participate in social occasions, so tour their new schools before the school year begins, and meet with a few residents and current students to learn about special programs that may make a move less stressful for young- sters. Relocating a family can be stress- ful, but involving kids in the process and anticipating an adjustment period can help families adjust more easily.