I’m 56 and have just $140K saved — with $40K in debt and a teen looking at colleges, is a comfortable retirement hopeless?

Say, for example, that Fred is 56, has $140,000 in savings, owes $40K on credit cards and personal loans, and has a teen looking at colleges and hoping for tuition help. Fred’s feeling hopeless about his financial situation, but he’s not alone.

“With high inflation, high interest rates, and higher day-to-day expenses, this situation is more common than we all wish,” Domenick D’Andrea, a financial advisor and co-founder of DanDarah Wealth Management, told Moneywise.

The good news is, while it will take work, Fred still has time to change course and build the financial security he deserves. Here’s what he can do.

Forget about paying for college

Unfortunately, Fred must first face a hard truth. He most likely won’t be able to pay for his son’s college.

“For the most part, parents want to do everything that they can do for their children,” D’Andrea said. “I would discuss college costs with them and explain that they may need to take out loans.”

John Gillet, CEO and founder of Gillet Agency, agreed, telling Moneywise, “Student loans exist, but I haven’t heard of a retirement loan. I wouldn’t sugarcoat this, but you’ll have to hyperdrive and hyperfocus your allocations toward retirement savings. Your window is closing.”

Experts also warn that any loans taken out should be in his son’s name, not Fred’s. As Howard Dvorkin, chairman of Debt.com, warned, “Parent PLUS loans or taking on debt to finance a child’s degree at the expense of your financial survival is a trap.”

Dvorkin suggested Fred tell his son to “explore community college transfers, in-state tuition, grants, scholarships and student-level work-study,” but not to provide direct financial help because “securing your retirement protects your child from having to financially support you later in life.”

A secure retirement is still within reach

While Fred’s teen may be out of luck when it comes to getting college costs covered, Fred still has a chance to achieve retirement security.

“Is a comfortable retirement hopeless? No, but it requires an immediate transition from passive hoping to aggressive execution,” Dvorkin said. This means allocating money the right way and potentially tackling the problem from both ends — cutting spending and increasing income or invested assets.

“I’d start with building a budget and seeing what expenses can either be reduced or eliminated,” D’Andrea recommended. Focusing on big-ticket items could be helpful, as Pete Waitzman, founder of Expedition Money, asked, “What are the big expenses you can shed, restructure or redo?”

If you can lower your housing or car payment, for example, you’ll benefit from months or years of savings. Cutting spending on these big items requires you to make a change once, not keep depriving yourself on an ongoing basis. Then, you can use the money to repay what you owe and invest.

“First, eliminate the $40,000 debt,” Dvorkin said. “You cannot out-invest a 20%-plus credit card interest rate. Prioritize paying off high-interest balances immediately.”