Financial Priorities For Your 30's and 40's

Investments and Insurance Planning, Calgary

The financial habits you create early in life tend to follow you for the rest of your life. That's why it's important to establish priorities early in life and form good money habits that will serve you well in the later years of living when you have to live off what you have saved and not have the time, energy or ability to go out and earn an income.

 

Nancy and I have an interesting perspective because we get to work with people of all ages and we get to see how various couples have saved and prepared. Here's what we have learned. 

 

Financial priorities of your 30's:

 

1. Settle into a career and get good at it. There's a shortage of good, reliable employees. Consistently show up and do good work and you'll always be employable. 

 

2. Keep debt under control. It's hard to swim with a brick tied to your foot. That's what debt does - it cancels out your efforts for getting ahead.

 

3. Start a savings plan. Always and in all ways start saving some cash. Under the mattress, in your sock drawer, a coffee can - somewhere. If your employer offers a matching program to make sure you maximize your contributions. Take advantage of your other savings programs like RRSPs, TFSAs and RESPs. Educate yourself about investing. The internet is a huge resource of information and help.

 

4. Don't buy more house than you need. Houses did not use to be the number 1 investment of Canadians. What we have seen in the past 12 years is an anomaly. Low-interest rates and home improvement shows have created this. Home valuations should only grow with inflation. Interest rates are going up now and will continue to do so in the coming years. Home prices are going back to rising at historic norms. Having a home is an expense.

 

5. Don't buy new vehicles. Instead, buy one that is a few years old. 

 

6. Buy the proper amount of life insurance. The odds of your house burning down is about 1 in 1200. The odds of having a disability is about 1 in 6. The odds of getting a serious illness is about 1 in 3 and the odds of dying is 1 out of 1. Everyone has home insurance. Only about 40% of Canadians have life insurance. With the low cost of life insurance, especially in your 30's, it's unwise not to have some. If you have a good income, a mortgage and at least one person who depends on you then you need some life insurance. 

 

7. Have a proper Will prepared. If you do not have a Will someone else has to decide what to do with your assets and your family. Take the time and spend some money to get this done. You can be guaranteed that it will cost less, in the long run, to have a Will then not having one.

 

Priorities in your 40's:

 

1. Increase your mortgage payments. Figure out what you need to do to have the mortgage paid off before you retire. Increase the monthly payments accordingly and get that sucker paid for.

 

2. Get some permanent insurance. This is a great time to convert some of your term (cheap) insurance into something permanent. You can choose terms at this age that are still affordable and also have it paid up before you retire in your early 60's.

 

3. Focus on your health. This is the decade where your body starts to fall apart and the decade where you realize your limitations. Eat better food. Get out and do something. Focusing on your health now will ensure you don't spend your 60's at the Doctor's office.

 

4. Maximize all of your retirement saving vehicles like matching group RRSP's at work, TFSAs, personal savings. You only have so many years to build tax-advantaged and tax-deferred savings. If you want to retire in 10 or 15 years, you need to start planning now how you will replace your income.

 

5. Do not take on any additional debt.

 

Conclusion

Financial independence isn't out of reach. It's not luck. It's consistently doing the right things day in and day out. It's saving a few dollars each week. Reducing useless expenses. Re-evaluating priorities. Making a plan and following it. Before you know it financial independence and freedom are closer than you thought possible.

 

Click here to Book Your first appointment

 

 

Retirement Income & Investment Planners,

 

Willis & Nancy

587-755-0159


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My wife and I realized a long time ago the value of a financial planner over just a bank representative. We just felt like a number to the banks as every year it seemed we saw a different adviser with a different view. But finding a trusted, knowledgeable and personable financial planner took a lot of time and effort. It just seemed, so many large corporate Financial Planners were more concerned about what they could make off of us rather than what they could make for us.
What we wanted, was not just reasonable returns now, but good personal advice in our preparation for retirement and what happens when retirement actually arrives. We wanted someone who would be walking with us, guiding us on our way to retirement.
From the first time, we found the web site for Langford Financial Inc, we could see the knowledge of Willis and Nancy and a real effort to educate and pass on their knowledge through seminars, workshops and their personal service. Once I reached out through their web site for more information, Willis was quick to respond, offering and giving whatever information I was looking for and never was there pressure to commit to anything.
The feeling of comfort and ease when talking with Willis was inviting enough for us to want to meet with Willis and Nancy, just to see firsthand if there was a connection and what working with them would look like.
And when we did meet for the first time, that feeling of comfort and ease was very evident. It was a unique experience for us to be able to sit down and get to know a financial planner (or a team of both Willis and Nancy) and not have any sales pressure on us. Just getting to know Willis and Nancy was important for us. We needed to be comfortable with them and see their competence in the business, and it was obvious that Willis and Nancy wanted to know us better so they could know how best to help us.
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Since the time we started working with Willis and Nancy I have attended many of their seminars and can say the information they have been teaching has been amazing. Always relevant, and consistent with their desire to help those coming up to retirement, and covering so many different situations as everyone has a different life situation. I know more than one of the tax-saving strategies they taught at their seminars will work for my wife and I, so we are very happy about that.
We would definitely recommend Langford Financial, not just for all your retirement planning needs, but they have great ideas on savings for your grandchildren too!
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Paul & Elaine Radder
Long-term Clients

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