Hey there, 40-Somethings!

Hey there, 40-Somethings!

April 09, 2024

Hey there, 40-Somthings!

Thinking back on my 40’s, I now realize how important those years are. Your 40’s are often the time you near the peak earnings phase in your career, straddling the line between the start of your career and your retirement dreams. This is the time to prepare for securing your financial future.

Here are several strategies that I believe are important in securing your financial future.

Pay off high-interest debt:  Focus on eliminating credit card debt and other loans with high-interest rates. This will help free up money for other financial goals.

Maximize retirement savings:  Aim to save 15-20% of your income for retirement. This may seem like a lot, but you will look back and be glad you made the effort. Take advantage of employer matching contributions in your 401(k) or other retirement plans.

Build an emergency fund:  Have 3-6 months of living expenses saved in an easily accessible account to cover any unexpected costs that may arise.

Review your investment allocation: As you near retirement, it is time to review your asset allocation. You may want to shift to a more conservative mix to reduce risk.

Think about college savings:  If you have children, consider a 529 plan for education expenses. These plans offer tax advantages.

Plan your estate: Safeguard your legacy and loved ones with a well thought out estate plan.

Plan for healthcare costs:  Research the cost of health care in retirement and factor them into your long-term financial planning.

Review your insurance coverage:  Make sure you have adequate life insurance, disability insurance, and health insurance to protect yourself and your family.

My partner and I created the Compass Process to help address and unify all those needs. The Compass Process focuses on where you are now and where you want to be in the future. We consider your life events as they evolve and your needs as they unfold. We align all aspects of your financial roadmap, giving you direction, guidance, and purpose.

 The time to begin planning for a successful and secure financial future is NOW!