#TBT: Financial Planning Basics: For 40-Somethings


While y'all may not be 40-year-old virgins, you may be 40-year-old slackers when it comes to financial planning. No worries! I'm here to help you get a start on your financial planning practices and any and every age group. If you're in your 40s, congratulations! You're about halfway to retirement! Scary to think about if you neglected to plan, but if you did all of the preparation in your 20s and 30s, you should be on the right track by now.

But if you didn't, there's still time to catch up! Here are some steps to take in your financial planning practices in your 40s -- but as always, I highly suggest that you pay for the assistance of a financial planner who can help you to put all of your eggs in a row. Be sure to check out this issue of Money Magazine Australia for more tips:

Step 1 - Stay Fit and Healthy

Getting sick is expensive. If you're already healthy or could potentially get sicker, now is the time to ensure that you're taking good care of yourself. Go to your annual physical, eat your fruits and vegetables, go to a spa, get a massage regularly, go to the gym or play sports. Stay fit for as long as you can, and you'll be around as long as you can for those who matter most.

Step 2 - Invest

Not just in stocks, but in things that bring you happiness. Losing your job in your 40s is difficult because oftentimes you won't be able to find an equally decent paying job as would someone with more education and less experience who can be hired for dirt cheap. This isn't meant to scare you, but while you can, be sure to invest in a side job or a hobby that you love just in case. Brew some beer, have a landscaping business, sell paintings, start a band, cook, clean, etc. HAVE FUN!

Step 3 - Check Your Social Security Contributions & Retirement Plan

Now is a good time to see where you stand on retirement planning, including how much you can expect from Social Security. Figure out where the gaps in your planning lie, so you can make sure you use the rest of your time working to ensure that you'll have enough saved. There are great planning tools out there to see where you stand, even if you didn't want to pay for an adviser.

Step 4 - Spend Time with Your Family and Friends

This one ought to be first on the list, but never lose sight of what is important in your life: your family and friends. Always enjoy them while they are here and always remember the reason why you are working so hard -- to be able to spend as much quality/fun time with them as possible.

Step 5 - Don't Compare Your Lifestyle with Others

By age 40, you may have many friends or colleagues who are the same age who seem to really have their shit together: they're driving nice cars, taking fancy vacations, they may or may not have kids who are also very well off compared to your family, etc. Don't make comparisons; its counterproductive and will only make you feel bad about yourself, and in turn your family will suffer too. If you want to make more money, do it for yourself and for the betterment and comfort of your own family; DON'T do it to show off to the neighbors.

Step 6 - Go Into the Future with Confidence

If you lack confidence about your money, there's a problem. Work to fix all issues now so you can go about the rest of your career and your life with calmness, clarity and confidence. Yay!

This article was originally published on GradMoney on May 19, 2017

Featured Posts
Search By Tags
No tags yet.

© 2018 by Jennifer N. Coombs and GradMoney. Proudly created with Wix.com

 

All rights reserved. Use of this Site constitutes acceptance of our terms and conditions and privacy policy.

 

Restrictions: The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of GradMoney or Jennifer N. Coombs.

 

Disclaimer: All data and information provided on this site is strictly the author’s opinion and does not constitute any financial, legal or other type of advice. GradMoney, nor Jennifer N. Coombs, makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses or damages arising from its display or use. We also do not make any personal investments on behalf of readers, nor do we offer specific trading recommendations to readers. GradMoney is not a licensed broker dealer. All investment actions as a result of GradMoney’s articles are to be made at the discretion of the individual investor. All investments contain risks; GradMoney assumes no liability for any loss of income or principal.

 

All questions or inquiries my be directed to the attention of Jennifer N. Coombs.