Financial planning for 39 year olds: Get ready for your 40s

If you’re turning 39, you’re likely juggling a lot – career, family, mortgage, and possibly even helping aging parents. It’s a pivotal time to pause and ask: Am I financially prepared for the next decade? No two paths are the same, but here are some smart financial moves to consider as you approach 40.

Be in the right KiwiSaver Fund: Review your KiwiSaver and complete a risk profile to ensure you are in the right fund for your stage of life and circumstances. This means checking if you are a conservative, balanced, or growth investor.

Established rainy day fund: This fund should now have at least 3 months of living expenses. Only use for emergencies and if you need to use some funds, start saving the balance back up again with slow and steady amounts each pay.

Review insurance cover: Talk to a financial adviser to regularly review and update your insurance policies to ensure they are fit for purpose. Lots can change during this stage of life, including health, family size, and assets.

Review your financial goals: Keep checking and achieving your goals. Sometimes life changes and you need to make tweaks. Regularly reassess your financial plan to ensure it aligns with your current situation and future aspirations.

Marriage or living together: Ensure you and your partner are on the same financial page. Set joint goals, have regular money dates to discuss finances, and be willing to compromise on spending and saving strategies. Be open and honest.

Estate planning: If you don’t have a Will, make sure you create one or update your existing one as circumstances change. If you have had any children, list a guardian for them in your Will. Sort out Enduring Powers of Attorney too.

Already a homeowner: You might be thinking about upgrading, renovating, or even investing in a rental property. Whatever your next step, make sure it fits comfortably within your financial means so you’re not stretching yourself too thin.

Children: If you have children, costs will increase as they grow. Education, food, clothing, technology, transport and other costs can stack up! Still important to live within your means.

Supporting aging parents: As our parents age, many of us find ourselves taking on a new role of supporting them (often called the sandwich generation). It’s a good time to start open conversations about their wishes, health needs, and financial situation. Whether it’s helping them downsize, reviewing insurance, or ensuring their wills and enduring powers of attorney are in place, a little planning now can make a big difference later.

Invest in your career: Consider further education or professional development to enhance your career prospects. This can lead to higher income and greater job security.

Diversify investments: Start or review your investment portfolio and ensure it includes a mix of stocks, bonds, and other assets. Consult a financial adviser for personalised advice to manage risk and optimise returns.

Travelling: If seeing the world is on your agenda, now is the time to start saving or if you have already got a savings plan, start travelling! Consider longer trips but remember your travel insurance.