The Money Management Newsletter: Managing Money
Investment planning throughout the life-cycles: ABCs & 123's
Ages 41-50: Accumulating wealth and the transistion to savings

By the Money Management Editor
Money Management Newsletter

Entering our middle years, our focus will shift from spending to savings. Expenses should become lower as children become self-sufficient, ending years at university or college. Outstanding mortgage balances nearly satisfied and therefore more manageable.

Notwithstanding the above, other members of your family circle, may be in different stages of their financial-life-cycle. New challenges might be on the horizon for all: caring for elderly parents, helping children with their homeownership goals. This age provides the opportunity to discuss such matters as "Will and Estate Planning" for yourself and/or your parents, even any health related and possible extended care concerns and how insurance can provide future security benefits.

However, your discretionary income should be expanding, making it easier to save and invest and add substantial contributions to your retirement/investment portfolios. Here's how to use that money to build longer-term financial security.

Pointers: Consider topping up your RRSP - including any unused RSP contribution room. Build or review your non-registered portfolio to include tax-efficient investments. The interest-bearing portion of your overall portfolio is more efficient if it is contained within your RRSP plans where all investment earnings are tax-free while your non-registered plans should concentrate on Canadian dividends and capital gain income, which are taxed more favorably. Review your investment strategy annually to ensure it is on track with your goals.

Information resource suggestions

Why You Need an Estate Plan - 10 Simple steps It's after-tax returns that really count Retirement: Saving it & spending it Household Directory of Documents

Next page: Ages 51-60 - Retirement is in sight

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