Strengthening Your Financial Resilience in Middle Age

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Strengthening Your Financial Resilience in Middle Age

Our resilience series started by outlining how middle age is a time to grow our resiliencies. In the next few blogs, we’ll examine each of these resiliencies more closely, and offer suggestions on steps you can take to ensure you are making the most of what you’ve earned – drawing on the wisdom that comes with age and experience.

We’ll start by discussing Financial Resilience. This means you’ve started to plan for both known and unexpected financial turns that may affect your personal life, professional work, emotional well-being and physical and mental health. By developing a fiscal strategy that grows and changes as your life does, you fortify your financial resilience. But what does that entail?

Take a close look at your income, savings, budget and insurance to determine your financial resilience. We encourage our clients to begin this process by asking questions such as these to determine which areas of their financial lives may need more attention:

  • Are my income sources diverse? Realize that multiple income sources support fiscal resilience.
  • Are my income sources secure? Am I financially prepared to weather a job loss, a decrease in income(s) or an increase in debt? Understand the potential costs of these scenarios.
  • Do I understand my current debt-to-income ratio? Do I foresee any significant near-term changes to this ratio? Remember that the less debt you have, the more financially resilient you’re able to be as you age.
  • How much cash do I have available in case of an emergency? Consider how well you are able to access your savings and assets, especially in case of a financial emergency.
  • Am I living within a budget? Examine where you may be able to reduce or cut costs to ensure an increase to your long-term savings.
  • Do I have adequate insurance? Assess how well your life and/or disability insurance will protect you and any dependents in case of financial challenges due to ill health and/or loss of income.
  • Am I working with an advisor? Advisors can help clients weigh their financial planning options and make informed fiscal decisions.

You’ve worked hard and want to enjoy middle age and beyond.  The Humphreys Group advisors answer these and any other questions you may have about your fiscal plans and offer comprehensive support to clients seeking to improve their financial resilience.