FORUM Credit Union's website works best with JavaScript enabled

Financial Goals Before 40

It never hurts to have a few goals in mind as you approach various age milestones. For example, before you’re 30, you should be maximizing employer benefits like a 401(k) plan. But what are the financial goals you should think about before you reach 40? Here are a few areas you may want to consider.
Financial Plan
As you near 40, it’s time to reevaluate your financial plan. What worked at 30 may not work at 40. Consider your mortgage situation, your investment portfolio, and your emergency savings. Would it make sense to refinance your home loan, diversify your investments, and adjust your savings? What is your debt outlook? If you have credit card debt, student loans, or medical bills, create a plan to reduce and eliminate that debt so you can save that money for the future instead. If you would like customized advice on creating a financial plan, FORUM Private Client Group can help. You can call 317.558.6322 or email
As you already know, the earlier you start saving for your children’s education, the better. If you haven’t already opened a 529 plan, it’s time to consider one. The earnings that accrue in this account come out tax-free as long as they are used on qualified education expenses. For Indiana’s 529 plan, click here.
Life Insurance
At this point in life, taking a look at your insurance needs is crucial. If you purchased a life insurance policy in your 20s or 30s, it’s likely that your goals have changed since then. At 40, people typically have young kids and various related costs they may not be able to take care of without their spouse. Life insurance can help you protect the people who matter most and give you peace of mind.
Long-Term Care Insurance
If you’re in your 40s, your parents are most likely in their 70s. If they don’t already have long-term care insurance or can’t purchase it themselves, you may want to consider making the investment yourself. These conversations are difficult, but necessary. In the end, figuring this out now could relieve you of a sizeable financial burden in the future. You may also want to look into a policy for yourself. The younger you are when you purchase the policy, the cheaper it will be.
Retirement Plan
As you approach 40, your retirement plan may also need to evolve. In addition to an employer matched plan, contributing to a Roth IRA is another great way to save for retirement. Earnings may be tax-free and money is more accessible than in a traditional 401(k).
The above is not intended to be tax advice, was not written by a tax professional and is informational only. Please consult a tax advisor for your specific situation.

Posted: 5/24/2017 with 0 comments

Categories: Finances, Investments, Money, Planning, Retirement, Saving, Spending

Blog post currently doesn't have any comments.
 Security code