General

Must-Follow Financial Advice For When You Turn 40

financial tips for when you turn 40When you turn forty, it’s the beginning of a new life. You are probably halfway through your career, and may have children to think about and plan for. Which is why it is so important to make yourself aware of where all of your money is going.

You should have some savings and pension plans in place already, but don’t worry too much if you haven’t. There’s still plenty of time – although the sooner you get started, the better. Let’s take a look at your primary financial concerns that you need to consider when you hit forty.

Pay Off Your Bad Debts

No matter how brilliant your investments and savings are performing, if you haven’t paid off your bad debts, they will cost you more money. Why? Because invariably, bad debts have high-interest rates, and these are likely to be far higher than any interest you are making on your savings. Make sure that all bad debts are cleared before you hit forty, and you will still have enough time to make your savings work better for you.

Check Your Pensions

When you turn forty, it’s a good time to reassess your pension funds. Are you putting away enough to provide you with 70-80% of your current income? That’s the kind of figure you should be looking for when you retire, to make sure you can enjoy the rest of your life in a comfortable state. If you haven’t saved enough already, there is still time to up your payments – or even swap your pension to another fund. It will also give you the opportunity to claw back any missed payments or insurance issues you might have had in the past.

Hire A Financial Advisor

Now you have your bad debts and pension sorted out; you can look into ways of putting your money into more profitable places. And, the best way to do this – especially if you aren’t up to speed on finances – is by hiring an advisor. The experts from Blueprint Wealth financial planning make a few wise suggestions. Firstly, make sure that whoever you hire has a broad range of experience, through pensions to creating a portfolio. Secondly, you should also choose a firm or individual who can help you manage what happens to your estate once you leave this mortal coil. It sounds bleak, but once you get to a certain age, you have to make those plans, particularly if you have children.

Choose Your Investments

Now you are ready to invest it’s time to look into where you should put your money. The best portfolios invest in many diverse areas, so consider mixing things up a little. Put some money into stocks and share, some into bonds, and some into other assets. This gives you a bit more protection and reduces your risk. Let’s say you invest all of your money in the mobile tech industry because you have heard it is a burgeoning area. What happens if something comes along and replaces it? This can happen overnight if a particularly big announcement is made, so it is vital to have that good spread in place.

 

Previous Post Next Post

No Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.