Madonna and me- Both 50 and Kicking it!

What does it mean to turn 50? For the Material Girl, it appears to mean just keep doing what you have been doing all along i.e. shaking that booty and grabbing headlines through any means possible.

For the rest of us though, it's a wake up call, it's "now or never" or indeed, it's about transitioning into our next phase of life, whatever that may hold. It's time to take stock of our resources and assess if we have what it takes to realize our personal objectives going forward. If you are fortunate, you are in relatively good health, the one area over which we have little control, despite all our medical technology. It is my personal theory that if you make it through your fifties, the decade when hereditary or lifestyle abuse problems are most likely to crop up, you're "good to go" for another 30 years. Either way, good health or no, this is the time to address your personal wealth situation and make some big decisions.

Still have personal debt? Make eliminating debt your priority. Up to age 45, it makes sense to take on debt to finance and education or purchase a home while putting savings into registered retirement savings plan (RRSP) for long term compounding of investment returns. After age 45, the rule of thumb is to concentrate on wiping out debt, particularly if you have fallen into the line of credit trap (and I'll admit I have) to finance family expenditures. You can do this by easing up on RRSP contributions if you have to (assuming you have been fully funding your RRSP to date) or doing your RRSP contribution and then using the refund to pay down debt (AND REALLY DO THIS- DON'T SPEND IT!).

Maybe more drastic measures are needed to put you in the black during this critical pre-retirement decade? Look at your income and your expenses. If you are not making enough money (and who is?) think about ways to augment your income by taking on a part-time job or starting your own business (get advice on how to deduct expenses from a tax accountant). If overspending is the problem, take a hard look at how you can reduce overhead expenses (such as cable/internet/telephone utilities, a growing budget breaker) and incidentals such as banking fees and entertainment. If teenagers and adult kids are sucking you dry, now is the time, for your sake and theirs, to talk about sharing expenses and monitoring spending. Let your kids pay their own cellphone for starters, and watch how they will cut down their usage voluntarily, and learn how to be responsible for paying bills on time.

If you are not in good health, do review your will, your power of attorney (mandate in case of incapacity in Quebec) and talk to your family about your financial situation (i.e. disability or other insurance, business concerns) and your personal wishes in the event you are not able to manage your own affairs. If you are in good health, do the same, because of course we never know what can happen around the corner.

Regardless of your health and wealth profile, do take this time to reflect on what is important to you. Are you doing the things that give your life meaning? Are there obstacles real or imagined that are keeping you from making a difference in your community? Look for inspiring stories of people who started second careers or found new purpose in their lives after age 50 (apparently this a growing phenomenon as baby boomers have no intention of going gently into that good night) and have a wonderful time getting to 60!