28 Oct How To Fix Your Finances So You Don’t Have To Work Forever with Bret Johnson
Are you watching your friends post about their dream vacations while you’re still wondering if you’ll ever be able to retire? Do you lie awake at night worrying about finances, feeling like everyone else figured out this money thing except you?
You’re not alone, and you’re definitely not broken.
As someone who’s transformed my own relationship with money and watched countless women in our community do the same, I know how paralyzing financial stress can be, especially when you’re in your 50s or 60s and feel like you’re starting from scratch. The shame, the comparison, the fear that it’s “too late” – I get it.
But here’s what I’ve learned: it’s never too late to take control of your financial future. And sometimes, the best teachers are the ones who’ve been where you are and found their way out.
That’s why I invited my friend Bret Johnson to share his insights. Bret didn’t always have it all figured out. He learned the investing game later in life, transforming his family’s financial future through smart, strategic moves that anyone can implement. Now, he and his wife Shaline travel abundantly, give generously, and have achieved something many of us dream about – they don’t worry about money anymore.
The Hard Truth About Starting to Invest Late
Let’s address the elephant in the room. If you’re in your 50s or 60s without substantial savings, you probably spent your younger years living life: raising kids, building careers, handling divorces, caring for aging parents, or simply trying to survive. While others were maxing out their 401(k)s, you were dealing with real life.
Investing is a long game, similar to fitness. You don’t get the body you want from one workout, and you won’t build wealth from one investment. The growth is painfully slow at first, which is why many people give up or never start. But here’s the empowering truth – starting now, even “late,” is infinitely better than never starting at all.
Your Financial Recovery Blueprint
Step 1: Eliminate the Debt Drain
Before you can build wealth, you need to stop the bleeding. Bret’s first move if he had to start over? Attack debt aggressively. Every extra dollar goes toward paying it off.
Here’s his strategic approach: If you need psychological wins to stay motivated (like seeing the scale drop when dieting), pay off your smallest balance first. That victory will fuel your momentum. But if you’re more analytical, tackle the highest interest rate debt first – it’s costing you the most money.
Step 2: The Non-Negotiable Investment Formula
Once debt is managed, implement the 5-15% rule: invest 5-15% of your gross income every single month, no matter what. If you’re starting in your 50s or 60s, aim for that full 15%. Yes, it might feel impossible, but this is about changing your trajectory. Like Bret said, “You either do this, or you sign off on working into your 70s and 80s. That’s no fun.”
Step 3: Embrace the Power of Index Funds
Forget trying to pick individual stocks like you’re Warren Buffett. For most midlife beginners, index funds are your best friend. Specifically, Bret recommends the S&P 500 index fund (like VOO) as your foundation.
Why? With conservative index fund investing, your money historically doubles every 7-8 years. That means even starting at 50, you could potentially double or triple your investment by retirement age.
Step 4: Dollar Cost Averaging – Your Stress-Free Strategy
Instead of trying to time the market (impossible), use dollar cost averaging. Set up automatic monthly investments of the same amount. When the market is down, you buy more shares. When it’s up, you buy fewer. Over time, this strategy smooths out the volatility and reduces your risk.
Bret’s approach: “Every month on the 2nd, I buy. Market up? I buy. Market down? I buy more. No emotions, just consistency.”
The Mindset Shift That Changes Everything
Here’s what separates those who build wealth from those who don’t: viewing market downturns as opportunities, not disasters.
When the market drops 5%, Bret doesn’t panic – he gets excited. “Stocks are on sale!” he says. This abundance mindset, rather than scarcity thinking, is crucial for long-term success.
For emergency funds, keep them accessible but working for you. Instead of a traditional savings account earning 0.1%, use a high-yield money market account earning 4-5%. Your safety net can still grow.
Getting Your Partner On Board
One of the biggest challenges? When one spouse wants to invest but the other is resistant. Bret’s advice is straightforward: have the hard conversation. Present the choice clearly – either you both commit to this plan, or you accept working well into your 70s.
For couples where one person manages finances, Bret suggests keeping a shared note with:
- Financial advisor contact information
- Accountant details
- Account locations and balances
- Investment strategy overview
This ensures both partners stay informed without overwhelming the less financially-inclined spouse.
Advanced Strategies for Accelerated Growth
Beyond the Basics: Growth Stocks and Sector Funds
Once you’ve established your index fund foundation (50-75% of your portfolio), consider allocating 25-50% to growth-oriented investments if you’re trying to catch up. This might include:
- QQQ (tech-heavy NASDAQ index)
- XLF (financial sector fund)
- Individual growth stocks (with proper research)
The Psychological Game
Bret’s background as a former gambling addict turned successful investor offers unique insights. He channels that competitive drive into “beating the market” through strategic investing rather than destructive gambling.
The lesson? Transform your relationship with money from fear-based to game-based. Make it interesting, competitive, and engaging rather than terrifying.
Your Investing Resource Toolkit
Ready to dive deeper? Here are Bret’s recommended resources:
- CNBC’s Halftime Show – Daily market insights and strategies
- Tony Robbins’ “Money: Master the Game” – Comprehensive investment guide
- Josh Brown’s “Compound and Friends” podcast – Real-world investing wisdom
- ChatGPT – Use it to run scenarios: “If I’m 55 with $10,000 to invest and can add $500 monthly, what could I have by 65?”
The Bottom Line: It’s Not Too Late to Invest
Here’s what I want you to remember: every successful investor started as a beginner. Every wealthy retiree once worried about having enough. The only difference between them and those still struggling? They started.
Whether you’re 35, 55, or 65, the best time to plant a tree was 20 years ago. The second-best time is today.
Stop comparing your Chapter 15 to someone else’s Chapter 35. Stop believing the lie that it’s too late. Stop letting fear keep you from the retirement you deserve.
Start with one small step. Open that investment account. Set up that automatic transfer. Read that book. Ask that question.
Your future self will thank you.
Remember: This blog provides educational information based on personal experience and expert interviews. Always consult with a qualified financial advisor for personalized investment advice tailored to your specific situation. The contents of the Midlife Conversations podcast is for educational and informational purposes only and is not intended to be a substitute for professional medical advice, diagnosis, or treatment. Always consult with a qualified healthcare provider. Some episodes of Midlife Conversations may be sponsored by products or services discussed during the show. The host may receive compensation for such advertisements or if you purchase products through affiliate links mentioned on this podcast.
