Are You on Track?

Are You on Track? What Affluent Households Should Be Evaluating in Their 40s and 50s

For those in their 40s and 50s who built a solid financial foundation: growing investment accounts, a paid-down mortgage, maybe kids heading to or through college. Some legwork is done, but the complexity doesn’t stop—it just evolves.

For many of the clients I work with, this is a transitional phase. They’re earning more than ever, but unsure how much longer they want to work. They’re helping aging parents while still supporting young adults. They’re thinking about retiring early or not at all.

That’s why now is the time to step back and re-evaluate. Not to reinvent the plan from scratch—but to refine it and align your financial strategy for what’s coming next.

At Members’ Wealth, we organize these conversations around four key dimensions of planning: Risk, Investments, Tax, and Estate—what we call the RITE™ Framework. Let’s walk through what affluent households in their 40s and 50s should be reviewing right now.

Risk: Are You Still Covered Where It Counts?

Too many clients assume that because they have coverage, they have the right coverage. But things change: your assets, your income, your responsibilities.

At this stage, you may need to revisit:

• Umbrella liability coverage, especially if your net worth or visibility has grown.
• Disability insurance—do you still have it, and does it make sense now?
• Life insurance—still needed for income replacement, or time to restructure?
• Business, rental, or personal liability exposure that could be better shielded through legal entities or trust structures.

You may also find yourself quietly assuming responsibility for an aging parent’s finances. If so, ask: do they have powers of attorney in place? What about long-term care? Are you prepared if they aren’t?

Risk isn’t just about markets. It’s about protecting your income, your family, and your lifestyle from the unexpected.

Investments: Growth Is Still the Goal—but So Is Control

Many clients in their 40s and 50s have accumulated sizable retirement accounts. Commitment to investing is no longer a focus, but now a bigger question is front and center: What’s the plan for those assets?

This is the time to:

• Coordinate investment strategy across taxable and retirement accounts—not just pick funds, but manage location, sequence, and cash flow planning.
• Consider partial Roth conversions to smooth future taxes.
• Evaluate concentration risk—whether in company stock, real estate, or even overexposure to U.S. equities.
• Start matching portfolio risk factors (inflation, interest rate sensitivity, equity beta, etc.) to real-life goals like travel, home projects, or philanthropy.

Most portfolios in this stage don’t need to be flipped upside down—but they do need to shift from purely accumulation to intention. We don’t just want growth—we want growth that serves the life you want in your next phase.

Tax: This Is Your Strategic Window

The years between peak earnings and full retirement are often the most valuable years for proactive tax planning.

Consider:

• Should you shift 401(k) contributions to Roth while rates are still low?
• Are you within the income window to benefit from Donor-Advised Fund contributions, bunching charitable gifts for future use?
• If you retire early, are you planning for Roth conversions in the “gap years” before RMDs and Social Security?
• Are you managing income in a way that avoids creeping into Medicare IRMAA surcharges or capital gains traps?

Planning ahead isn’t speculation—it’s strategy.

Estate: The Tax Cliff Is Gone—But the Planning Still Matters

The Big Beautiful Bill passed. The estate tax exemption didn’t sunset, and most families reading this are no longer worried about a 40% estate tax. That’s great, but it doesn’t mean your estate plan is done.

Now is the time to focus on what matters most:

• Outdated documents: If your wills, powers of attorney, or healthcare directives are more than 5–10 years old, they probably don’t reflect your current wishes.
• Beneficiary mistakes: We still see IRAs and life insurance policies naming the wrong people—or no one at all.
• Lack of coordination: Your assets may be titled one way, your trust says another, and your kids will be left guessing.
• Unclear intentions: If you want to stagger distributions, protect a child’s inheritance, or include charitable gifts, that needs to be structured—not assumed.

Good estate planning was never just about taxes. It’s about clarity, privacy, and easing the burden on the people you care about. Let’s make sure your plan reflects the life you’ve built.

Final Thought: This Isn’t About Retirement—It’s About Readiness

The most successful families I work with in this phase aren’t rushing toward retirement but, they do want confidence. They want to know they can spend more. They want to know that if something happens, their family won’t scramble. And they want to use the flexibility they have now—before health changes, job loss, or tax rules take that flexibility away.

That’s the value of revisiting your plan in your 40s and 50s: not because you’re behind, but because this is your moment to get ahead.

If you’re wondering whether your current plan still fits what comes next—let’s talk. We can walk through your situation using the RITE™ Framework and help you adjust while you still have time, choice, and leverage on your side.

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.

These examples are for illustrative purposes only and do not represent actual client experiences. Individual results will vary based on personal financial circumstances and tax laws.

About the Author – Stu Caplan, CFP®

Stu Caplan is Senior Wealth Strategist at Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions.

The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of industry experience, Stu and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations.

Stu received his MBA from The Robert H. Smith School of Business at the University of Maryland and his bachelor’s degree from the Eller College of Management at the University of Arizona. Stu resides in Bucks County, PA with his wife and two sons. He’s an avid golfer and is thrilled that his boys have embraced the game. He also volunteers his time as a board member of the PKD Foundation and Abrams Hebrew Academy.

To get in touch with the Members’ Wealth team today, I invite you to email info@memberswealthllc.com or call (267) 367-5453. 

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Investment strategies, including rebalancing, do not guarantee improved performance and involve risk, including potential loss of principal. Past performance does not guarantee future results.

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. 

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

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