How to start financial planning at 50?

[Anonymous]

Roth IRA to the max and 401k up to the match. As you learn more about personal finance, you may skip 401k altogether.
Match and tax deduction are not worth the negatives of the account, but people don't know it. If you retire at 62, you won't have too much money there.
Rent out the basement.
That kid should live in the house with you paying rent.
Stay healthy.Lift weights.
I never had a 401k or I'd be still working and not retired in mid 40s. Now I'm making sure my kids max out their Roths and add to investment accounts. They have no idea what to do.

[Anonymous]

Anonymous wrote:Have adult child move into their old room and rent out the basement to someone else to bring in money. Figure out how much money you need for retirement by figuring out your expenses, then figure out how much you will need pre-tax to cover those, then multiply your annual number by 20 (for a withdrawal rate of 5% a year) to give you a number as far as what you need saved for retirement. I'm guessing your Social Security will be minimal.

I think you are actually going to be just fine. Kind of agree with the bolded, it will also motive them to launch to be more independent/private.

Put the 400k in a money market account. it will double in a decade, and then double again in another decade. That is plenty of money.

Put a tenant in the basement.

If you really start running low on funds at some point in your life, you can always move to the basement unit and rent out the house for probably a lot more money.

[Anonymous]

Will your 24 yo be paying market rate rent? If not, she moves in with you, not into the apartment.

[Anonymous]

Thanks all. I am good with money in terms of being financially responsible but do not know anything about investing or planning. I will read up on bogleheads and start moving some money around. Glad to hear most feel I am in a decent position for retirement and that as long as I have another 15 years of 100k ish income, I should be set.

24 hour old has some chronic health issues, didn't finish college and is working a bit of a dead end job - she will make about 20k in 2025. Currently lives in another city due to moving to be with said boyfriend so if she moves back she will be unemployed until she finds another job. Now that I am back, I am hoping to get her more stable and independent. However she does not want to move back into an upstairs bedroom and wants the apartment. She would pay rent once employed again but not market rent.

[Anonymous]

Tell her you can't afford that. You are 50 and you need the income. She can live in the house but you will be renting out the basement to someone who can pay market rent.

[Anonymous]

Anonymous wrote:Thanks all. I am good with money in terms of being financially responsible but do not know anything about investing or planning. I will read up on bogleheads and start moving some money around. Glad to hear most feel I am in a decent position for retirement and that as long as I have another 15 years of 100k ish income, I should be set.

24 hour old has some chronic health issues, didn't finish college and is working a bit of a dead end job - she will make about 20k in 2025. Currently lives in another city due to moving to be with said boyfriend so if she moves back she will be unemployed until she finds another job. Now that I am back, I am hoping to get her more stable and independent. However she does not want to move back into an upstairs bedroom and wants the apartment. She would pay rent once employed again but not market rent.

Yeah, you can easily get on the right track with maxing 401K and Roth IRA, but if you have to support your kid for the rest of her life, your situation will be worse. Which may be okay with you, just do whatever you can to help her launch and launch quickly for both of your sakes.

[Anonymous]

Anonymous wrote:Tell her you can't afford that. You are 50 and you need the income. She can live in the house but you will be renting out the basement to someone who can pay market rent.

I agree with this. Make it a little uncomfortable for her so she's more motivated.

[Anonymous]

Anonymous wrote:Thanks all. I am good with money in terms of being financially responsible but do not know anything about investing or planning. I will read up on bogleheads and start moving some money around. Glad to hear most feel I am in a decent position for retirement and that as long as I have another 15 years of 100k ish income, I should be set.

24 hour old has some chronic health issues, didn't finish college and is working a bit of a dead end job - she will make about 20k in 2025. Currently lives in another city due to moving to be with said boyfriend so if she moves back she will be unemployed until she finds another job. Now that I am back, I am hoping to get her more stable and independent. However she does not want to move back into an upstairs bedroom and wants the apartment. She would pay rent once employed again but not market rent.

Of course she wants a cushy subsidized private apartment (who wouldn’t!) but at 24 she should be old enough to know that beggars can’t be choosers and grateful to even have the option of a free bedroom to herself where she can stay until she is able to get things together.