Your 40s

With 20 years of work behind you and another 20 (at least) ahead of you, now is the time to prepare for the second half of your career and for retirement afterwards. If you’re fortunate have a disposable income, be sure to invest a portion of it securely in order to maximize the potential retirement benefit. Remember, you’re far more likely to need that discretionary income in your later years.

To help you secure both your own and your family’s financial futures, here are six targeted initiatives to consider:

• Create a master plan: Figure out when you want to retire, how much you want to earn each year and create a realistic map to reach your goals.
• Sock it away: Once you know how much you’ll need, stay disciplined and save consistently.
• Don’t skimp: You may have more expenses than ever; still, it’s important to keep in mind that every dollar you save now can earn you as much as $10 in retirement income.
• Keep a close eye out: Scrutinize your retirement plan every couple of years. Make sure your investments are living up to your expectations.
• Embrace change: Be open and flexible to changing your retirement age and rate of savings as the economy and your portfolio’s performance shift in response to events.
• Protect your loved ones: Make sure the beneficiaries on all your accounts are up to date. If you don’t already have one, create a will. And determine if your life, disability and homeowner’s insurance provides enough coverage for your family’s needs.

40s guidance from the professionals at New York Life

Irma Perez, Agent, New York Life Silicon Valley General Office: “Education funding becomes incredibly relevant: think of paying for college as a team effort; the kids can apply a scholarship or borrow from you to help pay tuition. Either way, you’ll need to ensure your own financial stability before you can help your kids.”

Rakesh Bansal, New York Life Agent, Princeton General Office: “Consider a permanent policy with the power of guarantees over time. It’s going to cost you the first couple of years; but once you understand the value of permanent insurance—of a death benefit that doesn’t expire (as long as you pay your premium) and cash value build up—you can see how this can be of great benefit to you.”

Joel Steele, New York Life Agent, South Jersey General Office: “Review what you have; you always want to make sure your insurance is current and relevant. You need to be certain you’re covering a realistic amount. It has to cover a total loss of income in addition to any debt, student loans, credit cards, mortgage, etc that you have. You want to make sure your family is not going to barely scrape by and will be able to cover all their expenses.”