The Importance of Financial Planning in Your Adult Years: 40’s – 60’s

We recently went over the some information on the importance of financial planning in your 20’s and 30’s. Today we’re going to move forward and discuss how the importance of and how to continue financial planning from your 40’s and on.

Planning in your 40s

This is the time in your life where building up for a retirement fund is absolutely essential. Most people will, in fact, budget for their retirement savings on their own. However, you should still be allocating funds into a non-retirement savings account and this can be difficult for many to do.

Financial obligations you may face at this stage include:

  • Your children’s education
  • Retirement
  • Increasing your life insurance coverage
  • Determine how to allocate more funds toward your IRA or 401 (k)

It is important that you stay focused and find the most effective way to satisfy multiple financial goals. Seeking out a financial planner at this stage may not be a terrible idea.

Planning in your 50s/60s

At this stage, retirement becomes less of a thought and more of a reality. Have no fear! Financial planning will help to eliminate most if not all of the stress of this stage.

Financial obligations you may face at this stage include:

  • Choosing a retirement age
  • Discussing post-retirement activities and needs
  • Estimating Social Security benefits

At this point, you will want to be well on your way or close to being debt free. With that being said, most of your attention will be focused on safeguarding the retirement savings you have already accrued and creating an income strategy for the moment when you wish to retire.