Real Answers for Life’s Money Challenges

Im a 61-year-old woman with $700,000 saved for retirement.

Why cant I stop freaking out about money?

I save for home repairs, and then freak out when I write the check.

A woman covers her face in agony as rain falls from above around her.

I save for a new car and then freak out when its time to buy it.

I HAVE THE MONEY.

Im not poor, but I have been cash poor in the past.

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I have always saved for retirement, but I cant stop freaking out.

And by freaking out, I mean literally days of heart-pounding panic attacks where Xanax is my only friend.

How do other people handle this?

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-L.

Dear L.,

Fear is healthy to a degree.

Its what makes us wear our seatbelts and avoid dark alleys at night.

Some level of money-related fear is also a good thing.

But theres a big difference between healthy fear and the serious anxiety that youre experiencing.

An advice columnist is no substitute for mental health treatment.

Whatever you do, its essential that you discuss your anxiety with a professional.

I wish I could tell you that $700,000 is more than enough for you.

But that wouldnt be an honest answer.

Even billionaires wind up in bankruptcy court.

But theres plenty it’s possible for you to do to reduce the risk of whatever outcome you fear.

Financial health isnt just about any one number.

Context is what matters here.

The amount you have saved is meaningless without knowing your lifestyle, goals and concerns.

What Im wondering is how much actual planning youve done beyond just saving.

Do you have an age in mind for when you want to retire?

Have you thought about when youll take Social Security?

Our team has compiled alist of creative waysyou can fatten your bank account this week.

This is a long list, so dont get overwhelmed.

Well keep it updated as offers changes or expire.

All of this may seem overwhelming to think about when money already causes you so much stress.

But worrying constantly plays a mind trick on you.

You spend so much brain space and energy on worrying that it can feel like youre actually taking action.

I want you to do what seems counterintuitive and think about the absolute worst-case scenarios.

But I dont want you doing this alone.

Id urge you to meet with a financial adviser, since you have the means to do so.

Write down your biggest fears so that it’s possible for you to discuss them together.

Are you afraid of outliving your savings?

Are you worried the market will crash right as youre about to retire?

Or that health care costs will eat up yourretirement budget?

A financial adviser doesnt have any special sourcery that can guarantee none of these things will happen.

What they can do, though, is help you reduce the risk of those worst-case scenarios.

Did you know?

Perhaps a good investment for you would be to pay off that mortgage using a chunk of that savings.

Will it be scary to fork over that much money at once?

Of course, especially since the interest savings will probably pale compared to your investment returns.

Im not saying thats something you should absolutely do, but its worth discussing with your financial pro.

Suppose for some reason you had to quit working tomorrow.

Your plans for retirement would probably change significantly.

But at the same time, you wouldnt be left without food or a home.

You say youve been cash poor in the past.

Yet you overcame that and even managed to save for retirement when you didnt have much money.

You arent doomed to repeat your past.

Thats not to say youll never worry about money again.

But you could get to a place where fears about money arent dominating your life.

Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.

Send your tricky money questions to[email protected].

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