Three Money Mistakes at Age 55 That Could Delay Your Retirement

At age 55, retirement may still feel a few years away. But a big financial mistake now can be harder to recover from than the same mistake at 35. Here are three decisions that could change when you get to retire.

1. Taking a loan or withdrawal from your 401(k)

I’ve seen investors in their 50s take a loan or withdrawal from a 401(k) to pay for a child’s tuition or pay off a credit card. Think of the money in your 401(k) like oil in an engine. Lose enough oil and eventually the engine can’t do its job. During your 50s, that money needs to keep working because retirement is getting close.

2. Taking on new debt

You finally retire, your salary ends, but the payment on the second mortgage doesn’t. A new car, boat or expensive home project may be affordable while you’re still working. But that debt could still be taking money from you years later when your paycheck is gone.

3. Putting a large amount of money into a risky or unregulated investment

A hot stock tip or risky investment can be tempting, especially when you’re looking for a way to grow your money faster before retirement. A big loss at age 35 gives you years to recover. A big loss at 55 could change when you get to retire.

That’s what makes 55 different. You're still make big financial decisions but now have less time to recover from a bad one. Before making one, ask yourself a simple question: Could this decision change when I get to retire?

If you’re getting close to retirement and want help making those decisions, text me at 513-434-1930.