What to Do If You Haven’t Started Financial Planning by Your 40s

William Barreca - Apr 15, 2025

Your 40s are a financial crossroads.

You're likely entering your peak earning years.

You might have kids. A mortgage. Aging parents.

Retirement is no longer a distant concept. It’s on the horizon.

And if you’ve been too busy, overwhelmed, or unsure where to start with financial planning, you're not alone.

But here’s the truth: procrastination is expensive.

The longer you wait, the harder it is to catch up.

You miss out on compound growth.

You risk costly mistakes.

You trade clarity for stress.

Now is the time to take action. The decisions you make in this decade will significantly shape your future.

Here are the key steps to take if you’re in your 40s and haven’t done any financial planning yet:

If you don’t have one yet, aim for 3–6 months ‘worth of essential expenses. More if you’re a business owner or work on commissions.

This gives you a cushion in the event of job loss, health issues, or unexpected expenses. And keeps you from relying on high-interest debt.

You might feel behind. But the truth is: your 40s are still a powerful time to build wealth. If you start investing consistently.

Here’s how to get started:

Determine whether an RRSP or TFSA is best for you
- They help your investments grow tax-free or tax-deferred.
Set up automatic monthly contributions
- Put your investing on autopilot. This removes emotion and ensures you stay consistent.
Don’t overthink what to invest in at first
- Start with broad, diversified, low-cost funds or ETFs. The important part is getting started.

You don’t need to have it all figured out, but you do need a target.

Ask yourself:

This will help you know what you need to do today to accomplish your goals.

Tuition, books, housing. It adds up fast.

Open a Registered Education Savings Plan (RESP) and get free money from the government to help send your kid’s to university or college.

The government will match up to 20% of your contributions (up to $500/year per child) through the Canada Education Savings Grant (CESG).

Get started sooner rather than the later. The earlier you get started, the longer your contributions and grants have time to grow.

If you have a spouse and/or kids who are dependent on you then you need to protect them with insurance.

Life insurance proceeds can help replace your lost income, pay off debt (like a mortgage) and pay for future goals (paying for your kids’ education).

Disability and critical illness insurance can provide financial stability if you can’t work for a prolonged period.

You hope you’ll never need the insurance. But the results can be catastrophic for your family if you don’t have them.

Estate planning isn’t just for the ultra-wealthy or the elderly.

If you have kids, a home, or even a pet. You need a will.

Add powers of attorney and health directives too.

Some have the free time, financial knowledge and discipline to DIY.

For those that don’t or are in more complicated situations, a good financial planner helps you:

Avoid costly mistakes
Prioritize what matters
Stay accountable
Save you time and let you focus on the things that truly matter to you (family, career etc.)

*The views and opinions expressed in this article may not necessarily reflect those of IPC Securities Corporation.