Financial planning for 40-somethings

Good evening you 40-something person. What’s up? How is life? Are you someone in the midst of a busy career while managing teenagers and perhaps aging parents? Have you been a stay-at-home parent and struggling to figure out what to do now, since the kiddos don’t need as much help from you? Are you crushing it in life or have you been reflecting about the would-of/could-of/should-of, of life?

There are a lot of pressures in your forties.  Below, we lay out some of the financial conversations and plans you should be setting for yourself and family.

First, let’s chat about preparing for your future.

Retirement. It’s a word that can either delight you or strike some fear into your heart. Are you prepared for retirement? Have you figured out how much you need to retire? Does this all just freak you out? It is easy to allow emotions (especially about our finances) to take hold and we ignore our money, in hopes the problem goes away. When it comes to retiring, you cannot ignore your money. If you’re intimidated about saving for retirement, simply start by asking some questions:

  1. When do you want to retire?
  2. What does your debt situation look like right now?
  3. What does retirement look like to you?

Obviously, there are a lot more questions to ask. We wrote a post about the importance of saving for retirement ASAP. If you’re confused about this whole process, reach out to someone who is good with money. Whether it’s your parents, spouse, partner, friend or financial advisor, by starting the conversation about retirement, you’re already on the right path.

People in their thirties and forties can sometimes be classified as the “sandwich generation.” That is, they are responsible for raising children as well as caring for elderly or ill parents. This can be a thankless and exhausting task. Not only do you worry about work, the household, your marriage/relationship, yourself, plus managing kids and your parents, there aren’t enough hours in the day to tackle everything. The Globe and Mail and Huffington Post wrote about and highlighted the financial, emotional and physical stress this can cause a caregiver. If you find yourself in this position, you along with your spouse/partner/siblings/family need to talk about these stresses. How do you plan on finically supporting your kids and parents? Are you able to do that? If not, what is the game plan? The better your plan, the less stressful this experience will be.

Finally, as we have talked about countless times, you need to get your consumer debt under control. With retirement closer than you think, you need to start dealing with your credit card debt. We have written about this extensively on the blog and you can read about it here and here.

This ends our financial planning series! We are busy thinking and prepping for our next series, so stay tuned!

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