4 Financial Tips for Your 40s

Your 40s are a time to build confidence and take control of your finances. This decade often brings career growth, family responsibilities, and bigger goals — making it the perfect time to fine-tune your financial plan. In this article, you’ll find four key tips to help you strengthen your foundation, protect what matters, and move forward with clarity and confidence.

How to Build a Great Financial Team in Your 40s

Building a trusted team of financial professionals can help you reach your goals more effectively. In addition to a financial professional, consider adding a Certified Public Accountant (not just a tax preparer) and an estate attorney to your team.

You might wonder if hiring experts will cost you more — but when done right, the long-term benefits often outweigh the expense. A well-coordinated team can help you identify smart investments, prepare for retirement, manage risk, save on taxes, and ensure your family is protected, no matter what life brings.

How to choose the right financial team:

• Evaluate your needs: Identify what’s already in place and where you may have gaps.

• Ask for referrals: Talk to friends or family who work with trusted professionals.

• Meet potential advisors: Make sure you “click” with them and understand their services and compensation.

• Review annually: Check in at least once a year to stay aligned with your goals and life changes.

What Types of Insurance Should You Have in Your 40s?

Having the right type and amount of insurance can make a critical difference in your financial stability. By your forties, you’ve worked hard to get where you are — and while you can’t predict the future, you can protect against its uncertainties.

• Protect where you live: Homeowner’s insurance protects your home, belongings, and finances if someone gets injured on your property. If you rent, renter’s insurance covers what you own inside your apartment.

• Protect what you earn: Disability insurance protects your paycheck. If you’re unable to work, it continues paying a portion of your income until you return to work or qualify for Social Security income.

• Protect who you love: Life insurance provides for your family if something happens to you. A general rule of thumb is to have enough coverage to maintain your family’s lifestyle until your youngest child reaches adulthood.

• Protect your lifestyle: Long-term care insurance helps cover the gap between what traditional insurance or Medicare will pay and the daily care you might one day need.

Take time every few years to review your coverage limits and update your beneficiaries to ensure they still fit your current stage of life.

Even if you already have these policies, it’s worth reviewing them regularly. You can’t turn back the clock — but you can plan ahead. Let’s make sure your coverage grows with you.

How to Protect and Improve Your Credit Score

Your credit score plays a major role in your financial health — influencing your ability to buy a home, secure a car loan, or even qualify for the best interest rates.

Simple steps to protect your credit:

• Check your report annually: Review your credit report once a year, or more often if you’re planning a major purchase.

• Use the official site: Visit www.annualcreditreport.com, call 877-322-8228, or submit the Annual Credit Report Request Form.

• Watch for identity theft: Monitor for unusual activity and correct inaccuracies promptly.

• Add extra protection: Place a fraud alert or credit freeze with the credit bureaus for added security.

Track Your Credit Score

Forward Bank customers can access Credit Score Journey in online and mobile banking to track their credit health, monitor activity, and much more!

What’s the Best Way to Pay Down Debt in Your 40s?

You may have heard of “good” credit, like mortgage and student loans, and “bad” credit, like high-interest credit cards. Bad credit, as well as missed payments or high balances on multiple cards, can tank your credit score and hurt not only your financial future, but also your peace of mind today.

Paydown strategies to consider:

• Avalanche method: Pay off the cards with the highest interest rates first to save the most on interest.

• Snowball method: Pay off the smallest balances first to gain motivation and momentum.

• Ask for a rate reduction: Call your credit card company and request a lower interest rate — especially if your credit score has improved.

• Explore 0% APR transfers: Use balance transfer offers carefully to reduce interest costs while paying down balances faster.

Eliminating high-interest debt not only improves your credit score — it also frees up cash flow for saving, investing, or experiences that matter most.

See How Fast You Could Be Debt-Free

Try our Loan Payoff Calculator to see how long it will take to eliminate your loan and how much interest you could save by adjusting your payments.

How Can Forward Help You Stay on Track Financially?

Your forties are about momentum — using the stability you’ve built to make smarter, more confident financial decisions. Whether you’re reviewing insurance, fine-tuning your credit, or knocking out debt, Forward’s financial professionals are here to help you stay on track and protect what matters most.

_{The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.}