by Don Simkovich

Created on: February 09, 2008

During your peak career years, there are easy-to-follow tips to help you keep your financial future secure or help you develop a needed financial plan to guide you from your 40s in to your retirement years.

Enlist a Wise Financial Adviser

Start your financial planning in your 40s with sound advice. Choose someone who is honest, who listens closely to your current circumstances and who is willing to help you chart financial goals for the next 5 years, 10 years and up to 20 years.

If you need to select a financial planner, then ask someone why they got into the business. Listen for their passion as well as how they've gained their current knowledge and how they plan to educate themselves for the future. Also, how many questions do you they ask you about the health of your parents, education plans for your children or are they simply trying to sell you products that they've been ordered to sell?

A wise financial planner can help you earn more on your investments then you could alone. Plus, it's their job to stay on top of trends and changes in the economy. The most successful people surround themselves with competent advisors.

Diversify

What is in your portfolio? Mutual funds exclusively? Some stocks? How about insurance? Diversification is a broad term that you can break down this way:

Mutual funds / stocks
Diversify internationally as well as domestically. An economy in one part of the globe may be on the rise while an economy in another part of the globe may dip and even head into recession.

Insurance
Include this subject in your financial planning in your 40s. Term insurance may serve you well for the next 10 years. But after that it could get expensive. Perhaps you won't even need life insurance depending on your family's projected circumstances.

Consider purchasing long-term care insurance. It is less expensive at this age and could have you covered if you need to be hospitalized due to a major illness.

Disability coverage could serve your needs, too. If you became disabled how easily could your spouse or significant other provide for the needs of you and your family? This type of insurance could provide a financial safeguard temporarily if you were in a serious accident and lost your ability to work.

Diversification in your 40s can also include investments such as real estate. Whether or not you have good credit, educate yourself on the value of investing in a single family home or duplex and then holding on to the asset for appreciation and a small positive cash flow

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