When I turned 40, I did something most people don’t do until a crisis forces them to.
I sat down and looked at everything. Not just my bank account balance. Everything. Retirement accounts. Life insurance. Estate documents. College savings. Gifting strategy for the family. Investment allocation. Every piece of the financial picture — reviewed, evaluated, and updated where needed.
It took time. But it was one of the most valuable things I’ve ever done.
Here is what I looked at and what I found.
Retirement Accounts
The first question: was I on track? At 40, the general benchmark is having 3x your annual salary saved for retirement. The more nuanced question is: what does your retirement actually look like, and are you funding it accordingly?
What I evaluated:
Current balances across all retirement accounts (401k, IRA, Roth IRA)Investment allocation — was it still appropriate for my age and risk tolerance?Contribution levels — was I maximizing tax-advantaged space?Roth vs. traditional balance — was the mix right?
The Roth conversion opportunity: I had converted my traditional IRA to a Roth during a year when my income was lower than usual. Pay taxes now at a lower rate, and enjoy tax-free growth forever. If you have traditional IRA money and a lower-income year ahead, this is worth examining seriously.
Life Insurance
Most people set up life insurance once and never look at it again. At 40, your needs may have changed significantly.
What I evaluated:
Were the coverage amounts still appropriate?Were the beneficiary designations current?Was the policy structure correct (no minor children named directly as beneficiaries)?Was employer-provided coverage sufficient, or did I need additional individual coverage?
Estate Documents
This is where most 40-year-olds have the biggest gaps. What I evaluated and updated:
Will and revocable living trust — current and reflecting our actual wishes?All real estate titled in the trust (not in individual names)?Powers of attorney — current and naming the right people?Beneficiary designations on all accounts — updated?Guardian nominations for our children — still the right people?
College Savings (529s)
At 40, if you have children under 10, you still have significant time to build college savings. What I evaluated:
Were 529 accounts funded appropriately for each child’s timeline?Was the investment allocation age-appropriate?Had I considered superfunding (front-loading 5 years of annual gift exclusions)?
New in 2026: You can now use $20,000 per year from a 529 for private K-12 tuition. If your children are in private school, this changes the calculus significantly.
Gifting Strategy for Parents
At 40, many people find themselves in the sandwich generation — supporting both their children and their aging parents. What I explored:
Were my parents making use of annual gift exclusions ($19,000 per person per year in 2026)?Had they considered superfunding grandchildren’s 529s?Were their estate documents current?
The One Thing Most People Skip
The financial audit is only as valuable as the action it produces. After every review, write down three things:
What needs to be updated or changed?Who is responsible for making it happen?By when?
Put it on the calendar. Do it.
The Family Linchpin Checklist
Download The Family Linchpin Checklist — it covers the full framework of documents, accounts, and conversations every family should have reviewed.
Download The Family Linchpin Checklist Here
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The information in this post is for educational purposes only and does not constitute legal, tax, or financial advice. It is not a substitute for consultation with a qualified estate planning attorney, CPA, or financial advisor. Some links in this post may be affiliate links — see our full Affiliate Disclosure.
Do the Audit
Stop putting it off: