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Finance Management in Your Forties: 5 Important Factors

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Many people consider their career high to be somewhere in their forties. Combining the ambition and excitement of their earlier years with the experience that comes with time, your 40s could be a time where you have made the right decisions and are enjoying a certain stability in your life. It could also be the most important time to start some serious planning about your family’s future and to think about slowly easing into retirement.

Here are some tips to manage your finances in one of the most crucial junctures of your life. These can make a significant difference in your life 10-20 years from now. That may not be the most compelling case for a look at your financial profile now, but it is certainly something you will come to appreciate at a later point.

Asset Allocation

Your risk profile should and will change with age, and it’s important that you adjust your investment portfolio accordingly. Make sure it suits both your short-term and long-term goals. Investment in equity may be a great plan for when you retire, but it be would less suitable if you have financial requirements that are coming up sooner – maybe your kids are graduating in a few years and you need to plan for their tuition; maybe you are expanding your family and plan to buy a bigger house. Your plans must fit into your investment portfolio. Make sure they are well-diversified and that there is no allocation overlap.

Invest in Profitable Assets

If you have been fortunate enough to have a stable income in your 40s, you should look into making well-thought-out investments in solid assets, but you have to be careful as to what that “asset” might be. Investing in a second car might sound like a convenient idea, but it wouldn’t count as an asset because the capital cost would be depreciating down the line. Ideally, you should look into income potential for capital growth, short-term capital gains and the risk involved before you decide about investing in an asset.

Maintain an Emergency Fund

By this time in your life, you must have a decent emergency fund. If that is not the case, it is important to start now. You will find that your emergency funds will be tested more and more in your forties. Be it health troubles or your child’s education, health or even wedding expenses, it can hit you from any direction even though you might have insurance Winnipeg coverage to offset some. Make sure you maintain an appropriate-sized emergency fund and keep replenishing it as necessary. Also, it might be a good idea to reinvest it in some other taxable investment account so that it can grow, especially if you feel like you have less use for it. Withdrawing it can come with some penalties, but you’ll have a higher chance of making a sizeable growth over time.

Insurance

Making sure you have appropriate insurance coverage is one of the most important factors to take into account. Your insurance needs at 40 may differ greatly from your 30s, especially in relation to your health. Even if your employee package covers this, it would be prudent to review it now and then. Do you need a long-term care package? Would taking out disability insurance be appropriate? It could be a lifesaver in the event of income loss due to unforeseen emergencies. Have you renewed your term insurance package? Have you reviewed your claim beneficiaries in the event you’ve had some major life changes, like a divorce? If you have large assets, consider an umbrella policy that covers life, health, auto and home insurance all in one with good coverage so you don’t have to manage separate policies.

Retirement

Are you earning more now in your 40s than you were when you last upgraded your retirement account? Perhaps it is time you review your investments in that area now that you are getting closer to retirement. Many people make the mistake of siphoning off excess income into an inflated lifestyle, the net gain of which is zero. Consider boosting your retirement contribution. This could take the shape of adding to your 401K, or if you aren’t satisfied with the matching contribution you are getting, you could roll it into an IRA that you control.

With that said, don’t forget to take out some money to invest in yourself. You have worked your way up to this stage, and you deserve to sit back and enjoy some of your hard-earned money. While retirement planning is an important factor that you have to start considering from now on, don’t forget that you only get to live your 40s once.


Rain and Gusting and Ice: How to Drive in Bad Weather

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Picture the ideal day for driving. It’s probably mild and bright without a cloud in the sky. Unfortunately, the weather rarely complies with our driving wants and needs. Most peoples’ first choice would be to stay off the road during inclement weather, but sometimes life beckons. Whether you’re commuting to work or embarking on a road trip when a storm hits, how can you prepare for bouts of bad weather and keep yourself–as well everyone else on the road–safer?

Plan Well Ahead of Time

You can’t control the weather, but you can certainly control your preparedness for any situation you encounter on the road. Before you leave the house, check the weather. Sunny skies could turn to thunderous clouds over the course of a few hours. Look into all possible routes to see if you can avoid the worst of the storm, and leave early so you have enough time to reach your destination without rushing.

Bad weather is not the time to discover that you have a vehicle malfunction. J.D. Power recommends having your vehicle checked more frequently during seasons of bad weather like winter, and making sure that your windshield wipers, headlights, and mirrors are in working order before you pull out of the driveway.

If you live in a cold climate, pack a winter survival kit in case your vehicle gets stuck or disabled in the snow. The basics include, but are not limited to:

  • Windshield scraper and small broom
  • Flashlight and batteries
  • Energy-rich snack foods
  • Warm clothing and blankets
  • Grainy material for traction
  • First aid kit and pocket knife

It’s Raining, It’s Pouring

A little rain never hurt anyone, right? When it comes to driving, wet roads and impaired vision actually increase the likelihood of an accident. Almost everywhere in the U.S. experiences rain at least once a year, and some states can expect steady annual downfall. One of the best preventative measures you can take is increasing the space between you and the vehicle in front of you. Edmunds suggests aiming for a six-second gap to be on the safe side. If wet and humid conditions create fog, use your low beams to maximize visibility.

Hold onto Your Hat

It’s not just obvious tornado and hurricane-induced winds that drivers need to consider. Hurricane winds are considered 74 mph or faster, but the weather service puts out advisories for much lower speeds. In wind-prone states like Florida, the advisory covers sustained winds between 25-39 mph, or gusts at 57 mph. Robert Molleda of the National Weather Service explains some associated risks: “If winds are above 30-35 mph for extended periods of time, it can be an issue for high-profile vehicles on bridges and overpasses. Also, tall objects such as construction cranes can be hazardous in those winds.”

Sounds like a recipe for potential damages, doesn’t it? As for driving in gusty conditions, The Telegraph suggests that drivers should ease off the gas, brake steadily, and hold the steering wheel firmly to maintain control against the onslaught. It goes without saying that windy occasions are not the time to speed or tailgate. Even so, drivers can’t always react in time to others on the road or blowing debris. Drivers need to protect their vehicles and themselves against these weather-associated risks by having adequate insurance coverage, not just the minimum required by law. For example, if you’re in the Sunshine state, legal Florida auto insurance only equates to PIP, or personal injury protection coverage. However, chances are you’d need more coverage than that if you were involved in a weather-related accident.

Ice, Ice Baby

Snow and ice are beautiful from the vantage point of a warm house, but the story is much different from inside a car. Follow these guidelines from the Occupational Safety and Health Administration (OSHA) whenever possible to reduce risk when your tires are on ice or snow:

  • Steer into a skid
  • Stomp on antilock brakes and pump non-antilock brakes
  • Give yourself longer stopping distances
  • Rehearse maneuvers during the daylight in an empty lot
  • Avoid fatigue and rotate drivers when possible

With proper preparation, the right protective measures, and practiced defensive driving skills, you’ll be more ready to take on the elements in your vehicle. It’s preferable to stay home, but if you absolutely have to be out and about, stay safe and slow down.