The Ultimate 40s Financial Checklist

No matter what your current financial situation is, building healthy financial habits now will help you achieve your long-term goals.

Max Out Retirement Accounts

Maxing out retirement accounts such as a 401k ensures you get the maximum benefits from any employer matches. Contributions are also tax-deductible so you may end up with more money to save or invest at the end of the year.

Adjust Asset Allocation

Your asset allocation should change with your risk tolerance. As you near retirement, your asset allocation strategy should become less aggressive but still fall in line with the financial goals you have set with your financial advisor.

Use Other Employer Benefits

Examples of non-retirement account financial benefits offered by employers include bonuses, insurance plans, paid vacations, free meals, pensions, stock options, commuter benefits, gym benefits, and any other perks that may aid in your budget planning.

Update Your Estate Plan

It’s good to regularly update your estate plan to make sure your financial and personal legacy is passed to the proper beneficiaries as well as to make sure the estate transfer process happens as smoothly as possible. Always update your estate plan to fall in line with your overarching financial goals.

Review Your Life Insurance Policy

Make sure the proper policy is still in place for your unique life situation. Review the type of policy, the insurance carrier terms, the required premium, insured person(s), and the beneficiary of the plan. Understand how the benefits work and what restrictions may apply to your specific situation.

Explore Long-Term Care Insurance

Long-term care (LTC) insurance covers costs that are not normally covered by regular health insurance. However, if you wait too long you won’t qualify for LTC coverage. It’s important to work with your advisor to understand how long-term coverage works, and both the costs and tax benefits of long-term care insurance.

Refinance Your Mortgage

Refinancing your mortgage can translate to lower interest rates, increased equity, and the avoidance of a low-ball appraisal if trying to sell your home. Lowering your monthly payments will also allow you to save and invest that money in other areas. Work with your advisor on an individual basis to make sure you’re choosing the right refinancing options for your unique situation.