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Why Have a Financial Checkup if You’re a Millennial Rapidly Approaching Middle Age

Posted by : Premraj | Posted on : Wednesday, July 31, 2019

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In less than a year, millennials who were born in 1980 will turn 40, and the generation that is most frequently described as pampered, entitled, yet ambitious and achievement-oriented, will face a great milestone. And as exciting as this new era might be for many, it may also prompt one to assess their life, previous successes and failures, and especially their financial situation and future goals. One of the greatest financial drawbacks Gen Y has had to face is student loan debt, with the national average exceeding $1 trillion, according to the New York Federal Reserve Consumer Credit Panel. With many of them still struggling to pay off their debt, it might be a good time to conduct a thorough financial re-evaluation in order to ensure a more unencumbered, brighter future.

A bad credit score is not a dead-end 

According to Marketwatch, the majority of Millenials who are about to turn 40 have a poor credit score, ranging between 652 and 665 in a good case scenario. However, this doesn’t make it impossible to get a loan, as some companies grant loans for bad credit, which needless to say can significantly improve one’s financial situation, and help pay off previous debt. This type of financial aid can also be used to invest in potentially profitable endeavors, like a startup – which many 40+ year-olds brave for, making up for approximately 25% of middle-aged entrepreneurs. The good news is, with careful, smart steps, and a well-thought-out-plan, 80% of these businesses make it to their 2nd year, while up to 56% make it all the way their 5th. So, it goes without saying, a new loan just might be your golden ticket to a more financially stable future.

Why get life insurance if you don’t have one yet

Even though 40 is the new 30, and you might be in excellent health, giving some thought to the financial side of things in a bad case scenario can’t hurt. In other words, whether you’re married with kids or hoping to be, think about your loved ones’ future and the financial burden you’d be getting off their back in case the unexpected happened. According to Investopedia, “Millenials are the least likely to purchase a policy”, perhaps due to lack of information or insufficient consideration on the matter. However, with certain policies evolving to provide options for building wealth and tax-free investments, one really would be missing out on a great financial opportunity.

Don’t forget your pension pot

According to CNBC, “you should have three times your salary saved” in your 40s if you want to retire at a reasonable age. However, the majority of workers “can’t save at levels that will allow them to retire fully at age 65 at their current standard of living,” as stated in the Stanford Center on Longevity report. So, as you can imagine, it might be time to re-revalue where you’re at with your pension pot and see how you can do more to ensure a pleasant, financially stable retirement.

Just like your 20s and 30s, 40s will come with new challenges, pleasant and unpleasant surprises; however, being financially ready will make certain situations much more bearable, pleasant even…But only if you start planning wisely, now.

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