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Practical Planning Tip: Financial Planning In Your 40s

May 06, 2024

Today we’re going to discuss “What financial advice I would give to someone in their 40s?”


As I mentioned in my previous videos, there is plenty of advice I can give to a person in ANY age bracket, but I will limit my comments to just a few short GENERAL points.


1) Get your legal documents in place. By this point you probably have assets and a family and both need to be planned for in case you die. 2) Review beneficiaries: Along the same lines as the previous point, you likely have assets so be sure they go to the intended people if you die. So many people don't do this and then funds pass to the wrong people. There is an easy fix to what can be a big irreversible problem. 3) Increase savings rate: You are likely entering your peak earnings years so make sure your savings goes up. It's tempting to want to spend more money as you make more money, but you need to try to minimize your lifestyle creep. More money means being more responsible with where you allocate funds, and you should be sure to take care of your future self by saving more money as you earn more. and 4) Don't chase after stupid investments that seem exciting. In Yiddish we call this nonsense “nurishkite”: More money and more discretionary cash available means more money to blow on nurshkite such as luxury cars you don't need, a vacation house you will rarely go to, silly investments discussed by your friends and broke brother-in-law. Focus on spending money on smart things and smart investments. Remember, one of the most important strategies to build your wealth is to AVOID big mistakes. Stick with a sensible portfolio and avoid the excitement and you should be OK.


You can WATCH the full video here.