Financial planning checkpoint: the 6 things to think about in your 40s

You’ve racked up some solid wins and gone through plenty of changes. At this point, it’s important to take a moment and think about where you stand in your financial journey. This stage, often characterized by a more stable income and a deeper understanding of financial matters, presents a unique opportunity to build and plan our wealth more effectively.

So, consider this a jump-off point to your financial tune-up. Here’s a quick guide on the things you can think about — as well as the tools available for you — before you proceed in your journey.

1. Re-evaluate your financial portfolio

Schedule a financial health check-up. Analyze your current investments and savings. Are they aligned with your midlife goals? Consider shifting towards more stable, long-term investments. For instance, if you’ve heavily invested in high-risk stocks, it might be time to balance these with bonds or mutual funds.

Learn more about the securities you can invest in through Metrobank Group’s stock brokerage house, First Metro Securities, here.

2. Maximize retirement savings

If you haven’t maxed out your contributions to retirement plans like the Personal Equity and Retirement Account (PERA), now is the time. Aim to contribute at least 10-15% of your monthly income towards your retirement fund.

Explore additional private pension plans for added security. Learn more about how you can plan for retirement with AXA.

3. Diversify income sources

If you haven’t yet, consider investing in income-generating assets. Or is it time to start a side business? Creating a new income stream not only diversifies your income but also serves as a hedge against inflation.

4. Invest in health and Iinsurance

Prioritize health insurance and critical illness coverage. Review and update your existing health insurance policies. Life insurance, on the other hand, ensures that your loved ones are protected financially, no matter what life throws your way.

AXA has comprehensive plans that cover a wide range of needs.

5. Plan for your children’s education

Set up an education fund for your children. Explore educational plans that offer good returns and start contributing regularly. Consider their future educational needs, factoring in inflation and the rising cost of education.

6. Estate planning for peace of mind

It’s never too early to consult with a financial advisor or a lawyer to start your estate planning. Draft a will, and consider setting up trusts for your children. Ensure that your assets are distributed according to your wishes and that your family’s future is secure.

Leveraging the right financial products and services to ensure that your hard work today translates into a prosperous and secure tomorrow for you and your family. With careful planning and the right financial tools, you can pave the way for continued success and a financially secure future.

Learn more about this part of your journey:

• Redefining ‘success’ in midlife: going beyond the traditional metrics
• How mentorship can boost your career and life trajectory
• Are you ready to start your own business? Here are some things to help you plan