Financial Planning in Your 40s
Your 40s are a pivotal time in your financial life. You may be juggling raising a family, caring for aging parents, growing your career, or thinking more seriously about retirement. With so many competing priorities, it’s important to ensure your financial strategy is built for the long run, not just the present moment. Jacob Adkins, CFP®, Associate Advisor at The Kelly Group, shares practical ways to take control of your financial future during this critical decade.
1. Plan for Education Expenses
If you have children, college planning should be on your radar. Consider tax-advantaged options like 529 plans or other investment accounts to help your savings go further. Starting now can reduce future financial stress and may offer tax benefits, too.
2. Strengthen Your Investment Strategy
In your 40s, you’re likely still in the accumulation phase of building wealth. This means your focus should be on growing your portfolio while staying aligned with your risk tolerance and long-term goals. A diversified approach can help you stay resilient and on track, regardless of the headlines.
3. Update Your Estate Plan
Estate planning isn't just for retirees. Now’s the time to review and update your will, power of attorney, and beneficiary designations, especially if you are a parent. Doing so can protect your loved ones and ensure your intentions are carried out, no matter what life brings.
4. Reassess Your Insurance Coverage
Life and disability insurance play a vital role in safeguarding your family from the unexpected. As your income and responsibilities increase, so should your coverage. A financial advisor can help assess what level of protection makes sense for your situation.
5. Be Smart About Taxes
Make the most of tax-deferred accounts like 401(k)s and IRAs to reduce taxable income today while preparing for tomorrow. If you qualify, Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can provide triple tax benefits when used for eligible health expenses.
6. Revisit Your Retirement Goals
It’s easy to let retirement savings run on autopilot, but your 40s are the time to check in. Are you contributing enough? Are your goals realistic for your timeline? Adjusting your contributions now can make a big difference down the line.
Find a Financial Advisor Bel Air, MD
At The Kelly Group, we believe that financial success doesn’t happen by accident. It comes from being intentional.
If you’re ready to take the next step, find a financial advisor in Bel Air, MD who understands your goals, your values, and your vision for the future. We’re here to help. Get in touch with our team today to start building a plan with confidence.
The Kelly Group is the trade name of Kelly Financial Group, LLC, a registered investment adviser with the Securities and Exchange Commission (“SEC”). Registration of an investment adviser does not imply any level of skill or training. For more information about our services, please see our Brochure and Relationship Summary, available on the SEC’s website at www.adviserinfo.sec.gov and The Kelly Group’s website at www.kellyria.com.