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Your Financial Plan and Checklist in Your 40’s and 50’s

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Are you overwhelmed by conversations surrounding your wealth and what you are OR aren’t doing? I get it. But, it’s that time for you to start thinking about YOU!


Today on the Thrive For[e]ward podcast we are continuing our conversation about what you can be doing in each decade, this week it all about your 40’s and 50’s. That said, if you are older (or younger) this information is applicable and can assist you on your financial journey.


In YOUR 40’s…


During this time, you are most likely still going through life transitions. Maybe you are advancing in your career, re-entering the workforce, have a child (or more) heading off to college or even starting to plan for a son or daughter’s wedding. Regardless, all these transitions will require planning and lots of conversations to ensure you are thinking ahead.


I’m a firm believer that the values and emotional conversations come first, then strategy. You don’t want to financially sacrifice for your children so they eventually have to take care of you later. Personal health and wealth means balance.


If you are in fact re-entering the workforce, this might feel overwhelming. You have been home raising kids and now have to determine where and what you want to do. One great resource, (in fact I’ve hired employees from this site) is Bus Stop Mamas.


If you have been at your job for a while now, it might be time to ask for a raise or negotiate for more benefits. Make sure you lean into your personal board of directors to better understand how you can get the most from your compensation package.


Ramit Sethi, best selling author and negotiation expert just released this awesome guide on how to negotiate a higher salary.  While most people go about asking for a raise the wrong way, Ramit suggests, “Negotiating your salary WILL take work – but with the right system, you can do it in days or weeks.”  (Source: Forbes)


Some other things to be thinking about in your 40’s include:

  • Avoid getting into more debt. While you can increase spending in some areas it’s important to not let the costs overcome you.

  • Boost your retirement contributions. If you are making more, then put more in for later. This might include adding more to your 401K, opening a Roth IRA, or starting at taxable investment account.

  • Re-evaluate your estate plan and your insurance plan. Review your coverage and see what changes should be made.

  • Save for health care. As you get closer to retirement, how are you saving for health care? Medicare is not free, you still need supplemental plan. Contributing to an HSA is important.


In YOUR 50’s…

When you enter your 50’s, you are starting to think more about retirement and what your life will look like as your children are most likely grown, but you are still possibly managing some larger debts like mortgages, loans, etc. Financial planning at this time is even more important.


Here are some things to avoid in your 50’s: 

  • Don’t play into your emotions. Investing is for the long term. It’s not just 65 you have to get to, it’s beyond that. Your funds have to last longer and pacing with inflation is something you need to have a good understanding for.

  • Don’t get yourself into more debt. Pay down as much as you can so you can be in a healthy space. Being mortgage free is a great goal but not always the reality.

  • Don’t want until you aren’t healthy to think about long-term care.

    • Listen to our “Costs of Care” episode where we dive into long term care, extended care, the care you need beyond hospital and long-term disability.



Lastly, but most important. You want to look at your retirement buckets and consider how you will access your money.


There are three buckets:

  • Tax free

  • Taxable

  • Tax Deferred


Remember, you don’t want to outlive your money, you want your money to outlive you.



If you are interested in learning more about Forethought Planning and how we can help you on your journey, please schedule an appointment to our complimentary 30 min Wealth Assessment session to learn more about how we incorporate these strategies and others to assist you through the financial planning process. 

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Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors’ Pride, a SEC registered investment advisor. LPL Financial, Advisors’ Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. Any of the parties listed above are not affiliated with Forethought Planning, Advisor’s Pride, or LPL Financial. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor’s Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services. Socially Responsible Investing (SRI) / Environmental Social Governance (ESG) investing has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.

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