While the 40s may be the new 30s, you are one decade closer to retirement. It's time to tackle your finances head-on to ensure a stress-free future. Brooks Reitzel Financial Planning Services in High Point, NC, has decades of experience helping individuals obtain financial security, and they have a few recommendations for financial planning in your 40s.
Tips for Financial Planning in Your 40s
Build Up Your Savings
If you don't have a rainy day fund already, it's time to begin one. Most financial planners recommend having enough money saved to cover all of your family's expenses for up to six months. Separate from a retirement fund, store your savings in an account that doesn't restrict your access or limit your withdrawals or transfers.
Pay Off Your Debts
This is also the perfect time to begin paying off your debts. When your medical bills and student loans are taken care of, you’ll have more money to save for retirement. It may be a good idea to begin paying off the accounts with the smallest balances, but speak with a professional to determine the right course of action for your financial planning.
Prepare for the Future
As you approach retirement age, it's time to properly prepare for the future and any problems or expenses that may arise. Evaluate your 401(k) and make sure you're paying enough into the account. Consider investing in funds outside of your current company to prevent all of your retirement savings existing in one account. It's also a good time to begin estate planning.
If you’re preparing for your financial future, Brooks Reitzel Financial Planning Services has the experience and qualifications to help you develop a comprehensive plan. Call the High Point office at (336) 885-7900 to schedule your consultation, and learn more about the company online.