You’re forty and fantastic. And while this decade of your life is going to bring in some wonderful experiences and lessons, this is the sh!t you should already know.
1. You know that carrying high-interest debt is dumb.
Stop paying 18% interest on the dinner you enjoyed six years ago. Credit card debt is something that many Americans struggle with. However, you’re not the average American. You’re a Wela user, and you’re ready to stop being a part of this statistic. Get a debt payment plan in place and knock it out. Once you’ve paid off your card you don’t necessarily have to cut up your plastic. You just need to use it responsibly.
2. You know what you want to DO in retirement.
You’re officially in the countdown to retirement, and while hopefully you started saving many years ago, now is the time to figure out what you want to do in your retirement. Do you want to move to a condo on the beach in Florida, or are you going to start regularly volunteering at the animal shelter down the road? Maybe you want to see how many triathlons you can run in a single year. Regardless of how you want to spend your retirement, by first understanding how you’ll be spending your retirement nest egg you can then decide exactly how much you'll need to save and set more appropriate goals.
3. You know what would happen to your finances if you were hit by a bus tomorrow.
Two things in life are certain – death and taxes. Thankfully you figured out taxes a while ago, but death… eh, you’ve put off thinking about that until now. Once you’re in your 40s you’ve probably racked up a few financial assets and obligations (we’re talking kids here folks). For this reason, it’s time to get a will in a place. Assets are the last thing that you want your family to worry about if something were to happen to you. Fix that by talking to a lawyer.
4. You know if you'll help your kids pay for (insert expensive thing here).
You got the kids through diapers, and now they can feed and dress themselves. This is the best time to decide if you want to help them pay for college so you can start putting money aside. Maybe little Brittney has been coding since she was 12, so she’s skipping college and going straight to work at Google. Will you help pay for her future wedding? The point is to know what large expenses you want to help your children pay for in the future. That way you’ll have more time to squirrel away the cash, and can avoid taking on debt and/or putting your retirement on hold.
5. You know your parent’s financial basics and how they want them handled.
Hello, sandwich generation. We see you balancing your aging parents and your kids. While this is not an easy topic to broach, it’s important that you at least know the basics of your parent’s health care and retirement finances. Do they have long-term care insurance? Do they have an estate plan? By knowing now how your parent’s expect things to be handled, you’ll be better prepared for when they need your help.