6 Financial Planning Moves For Your 40s


The financial planning moves that helped you build a foundation or support your family awhile ago may not be enough now that you’re in your forties. This decade might be the first time you really feel the pressure of a looming retirement, send your kids off to college, or debate downsizing your family home.

Wherever you are in your forties, there are some universal money moves that will help you prepare for the next year, next 10 years, and beyond.

Most people go day to day, saving where they can. They hope it’ll add up to enough for their retired years. Do you know exactly how much you have saved? What about how much you need? It’s easy to ignore the long-term when you’re buried in day-to-day costs and unexpected expenses. Being conscious of your goals makes it easier to plan a way to get there. So, break your retirement needs down into very specific numbers.

Try using a retirement calculator if you’re struggling to come up with a goal number or your next financial planning moves. That awareness will help you move toward your goal, even if it’s a little bit at a time.

If you have a 401(k), 403(b) or TSP through your employer, work on maxing it out or adding to it as much as you can.

It pays to do your research. Be aware of different retirement plan options. Talk to your HR department to get clear on what your company offers.

Does your employer participate in a retirement matching program? If they have agreed to match what you’re saving for retirement (usually up to 5%,) try to make that your minimum investment. That extra boost will make a huge difference in the long run.

If you think taking classes was just for your 20s, think again. Learning a new skill is important for your mind and your career. Getting that certification or applying for a new position at work keeps you marketable, sharpens your mind and can earn you more money. The world is changing rapidly. Keeping up with those advances will help you stay adaptable and valuable in your career.

Someone in their 40s is likely to be established in their career and family lives. As a result, it’s easy to get lax on a budget. If you can afford more than your needs, it’s tempting to start upgrading. Maybe you want a nicer car, bigger backyard or fancier vacation.

It’s fine to treat yourself and your family but do it consciously. Keep it within the parameters of your major financial goals. Don’t let your costs get out of control.

Have you looked over your investments…

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