Planning for 40-Somethings - Adviser Investments

Planning for 40-Somethings

You’re well established in your career. You may have your own family as well as aging parents to look out for. On top of that, inflation is taking a bite out of your budget and 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:

  1. 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 liability policy that is roughly equal to your increasing net worth.
  2. 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), IRA, 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.
  3. 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.
  4. 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.
  5. Create a financial plan. As your financial situation becomes more complex, it’s even more important to have a clear view of your assets, liabilities and broader financial status. A tailored financial plan will provide that.

This list is certainly not exhaustive, so please contact your advisor if you have any questions or would like to work with us to review your financial plan. We’re happy to help.

About Adviser Investments

Adviser is a full-service wealth management firm, offering investment managementfinancial and tax planningmanaged individual bond portfolios, and 401(k) advisory services. We’ve been helping individuals, trusts, institutions and foundations since 1994. Adviser Investments and its subsidiaries have over 5,000 clients across the country and over $8 billion in assets under management. Our portfolios encompass actively managed funds, ETFs, 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. To see a full list of our awards and recognitions, click here, and for more information, please visit or call 800-492-6868.

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