Planning for 40-Somethings December 10, 2021 Family Financials Print You’re well established in your career and hopefully earning more than you spend. You may have your own family as well as aging parents to look out for. On top of that, retirement has crept a decade closer. That’s a lot to manage—and financial planning can help. Here are five tips to strengthen your financial foundation during your 40s: Protect yourself with insurance. You can’t put a price on peace of mind. Disability insurance can help protect your income if you are unable to work. Life insurance can help provide for your loved ones if you pass away. Health insurance is an absolute necessity. If you own a house, homeowner’s insurance is another essential. And consider a personal umbrella liabilityLiabilities are calculated by adding up your existing debts (mortgage, car loans, student loans, credit cards, etc.). policy that is roughly equal to your increasing net worth. Focus on retirement savings. If you don’t already, begin contributing at least 10% of your pre-tax income (or up to the annual limits if you can afford it) to your retirement savings accounts (e.g., 401(k), IRAA type of account in which funds can be saved and invested without being subject to tax until the account holder reaches retirement age., etc.) right away. Yes, you can include employer contributions, if any, in your tally. Consider bumping up your contribution percentage every time you receive a raise. Invest outside of retirement accounts. In addition to participating in your employer-sponsored retirement plan, consider opening a brokerage account to grow your savings above what you’d earn in interest with a bank account. If you have children, give us a call about setting up a 529 plan to prepare for their future educational expenses. Talk to your parents about finances. Your parents may be nearing or already in retirement. Now is a great time to have an honest discussion with them about their plans as well as their finances. This will give you visibility into whether you may need to provide them with some support in the future. For more information, listen to our podcast on the topic. Create a financial plan. As your financial situation becomes more complex, it’s even more important to have a clear view of your assets, liabilitiesLiabilities are calculated by adding up your existing debts (mortgage, car loans, student loans, credit cards, etc.). and broader financial status. A tailored financial plan will provide that. This list is certainly not exhaustive, so please contact your wealth management team if you have any questions or would like to work with us to get started on your financial plan. We’d be happy to help—after all, we’re The Planner You Can Talk To. About Adviser Investments Adviser Investments is a full-service wealth management firm, offering investment management, financial and tax planning, managed individual bond portfolios, and 401(k) advisory services. We’ve been helping individuals, trusts, institutions and foundations since 1994, and have more than 3,500 clients across the country and over $7 billion in assets under management. Our portfolios encompass actively managed funds, ETFsA type of security which allows investors to indirectly invest in an underlying basket of financial instruments (these may include stocks, bonds, commodities or other types of instruments). Shares in an ETF are publicly traded on an exchange, and the price of an ETF’s shares will fluctuate throughout the trading day (traditional mutual funds trade only once a day). For example, one popular ETF tracks the companies in the S&P 500, so buying a share of the ETF gets an investor exposure to all 500 companies in the index., socially responsible investments and tactical asset allocation strategies, and we’re experts on Fidelity and Vanguard mutual funds. We take pride in being The Adviser You Can Talk To. Our minimum account size is $350,000. To see a full list of our awards and recognitions, click here, and for more information, please visit www.adviserinvestments.com or call 800-492-6868. This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed. Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged. Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional or licensed insurance professional regarding your specific legal or tax situation, or insurance needs. 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