Joseph Sachetta
50 and Feeling Behind? 8 Steps to Get on Track Financially
If you’ve recently turned 50 and are wondering, “Is it too late to get my finances together?” - you’re not alone. Many Gen Xers hit this milestone while juggling college bills, career demands, and aging parents. It’s common for financial planning to get sidelined.
Here’s the good news: Gen X now controls about 27% of all U.S. household wealth — $41 trillion as of late 2024, up from 18% a decade ago. That growth shows that late starters often have more financial potential than they realize. There’s still time to build a solid plan.
Why 50 Is a Turning Point
These are often your peak earning years—and possibly when stock options or equity benefits begin to mature. You might also be among the many Gen Xers positioned to inherit part of the $39 trillion expected through 2048.
But with caregiving duties, college costs, and retirement all colliding, the stakes feel high. A coordinated plan helps you prioritize with confidence and avoid feeling overwhelmed by what’s ahead.
- Get Clear on Where You Stand
Start by getting a complete view of your current financial life including your accounts, debt, insurance, income, and expenses. Many people find this step surprisingly calming. It’s not about looking back with regret; it’s about moving forward with clarity. Once you can see the full picture, your next steps become far more strategic.
- Revisit Your Goals and Adjust
Only 14% of Gen Xers feel confident about their retirement savings, but most still have 15–20 years of strong earning power left. That’s a meaningful window to work with.
Having a financial plan lets you explore “what if” scenarios. How might supporting aging parents or helping kids with tuition impact your retirement? What does your ideal retirement looks like? Reconnecting with your goals now ensures your plan reflects what matters most to you.
It’s also a smart time to explore your own future care needs. Many people in their 50s wish they’d looked into their own long-term care planning sooner.
- Make the Most of Catch-Up Contributions
It’s easy to underestimate how much progress you can make in your 50s. Many clients come to us with money and investments scattered across accounts. Not being able to see a full picture of what you own can contribute to a feeling of uncertainty. That uncertainty can lead to the false belief that it’s “too late” to start.
But with steady contributions and smart investment choices, it’s possible to gain serious momentum. At 50, you’re eligible for catch-up contributions of an additional $7,500 to your 401(k) and $1,000 to an IRA. Committing to those contributions over the next decade, even with modest annual returns, can meaningfully grow your nest egg. It’s about committing to a clear, consistent path forward.
- Review Your Investment Strategy
At this stage, it’s important to balance growth with security. Some Gen X portfolios are overly concentrated in employer stock or cash. Instead, aim for diversification across tax types—traditional, Roth, and taxable—so you have flexibility when retirement withdrawals begin.
- Address Taxes, Insurance and Risk
The right financial decisions can look very different once you factor in taxes. This is especially true if bonuses, equity compensation, or capital gains push you into higher tax brackets. It’s essential to look at your financial decisions through an after-tax lens, not just a before-tax projection.
It’s also time to revisit your insurance. Policies from your 30s may no longer reflect your income, assets, or family responsibilities. Make sure your life, disability, and long-term care coverage still match your reality.
- Estate and Legacy Planning
By 50, many people have experienced major life changes such as divorce, remarriage, or the loss of a parent. That makes this a good time to revisit your estate documents (wills, trusts, health proxies, and beneficiary designations) to be sure they’re current.
For those who live alone or manage finances independently, it’s also worth planning for what happens if you can’t manage your affairs. Setting up trusted contacts and simplifying access to financial accounts can bring peace of mind.
And if giving back is part of your vision, consider building charitable giving into your estate plan. Whether it’s through donor-advised funds, charitable trusts, or simple beneficiary designations, thoughtful planning ensures your values carry on.
- It’s Not Too Late—It’s the Right Time
When we’re young, we think we’re invincible and that we’ll live forever. Retirement feels like a distant concept; something for later. But at 50, life starts to feel like it’s moving faster, and the need for planning becomes real.
The good news is that your next financial chapter is still unwritten. The decisions you make in your 50s can reshape the path to 65 and beyond. Your 50s can be a defining chapter in your financial story, when you turn uncertainty into security and momentum.
- Partner With an Advisor Who Sees the Full Picture
A major reason to work with a financial advisor is not having to go it alone. An independent, impartial advisor can offer a realistic approach to decision-making that cuts through the emotional reactions that often lead to poor choices. There’s no one-size-fits-all formula, and that’s exactly why it’s called personal financial planning.
Maria and Jason: A Common Starting Point
At 52, Maria and Jason had done many of the right things: steady careers, two kids in college, and no major debt beyond their mortgage. Still, they felt behind. Their financial life was scattered—old 401(k)s, a brokerage account they rarely checked, and life insurance policies they hadn’t reviewed in over a decade. They felt stretched by tuition bills and unsure how to balance those costs with their own retirement needs.
What Would Sachetta Do?
For clients like Maria and Jason, we begin by organizing the full financial picture. That includes consolidating accounts, reviewing insurance and estate documents, and aligning investments across traditional, Roth, and taxable buckets. We’d also introduce “what if” planning to weigh decisions like tuition support, elder care, or phased retirement.
A big part of the conversation is prioritization. We’d help them evaluate how to support their kids’ education—through cash flow, loans, or a blend—without losing sight of catch-up contributions and long-term retirement goals.
Through that process, it’s not uncommon to uncover more progress than people realize. In cases like Maria and Jason’s, clients often discover that they’ve made more progress than they thought. They just haven’t seen the full picture laid out. Organizing and reviewing their financial information helps replace uncertainty with a sense of direction and greater peace of mind.
At Sachetta, we don’t judge. We listen. We pair you with both a wealth advisor and tax planner to create one coordinated plan that spans your investments, taxes, estate needs, and insurance. This approach is how our clients move from anxious to confident.
Let’s start with a conversation. No pressure. Just clarity, direction, and a plan that fits your life.
Some of the persons and/or names in this article may be fictional and intended to either illustrate a concept and/or protect a subject’s privacy.
Joseph Sachetta, CFP®, CPA/PFS, MBA, MST, For over 40 years, Joe has worked in finance and accounting. He is a Certified Financial Planner, and a Certified Public Accountant. Joe’s passion lies with helping his clients strike a balance between living for today and saving for tomorrow.