I Asked a Financial Planner What Most People Get Wrong at Mid-Career
Most people expect to be settled mid-career, with money worries behind them thanks to better pay and more confidence in their roles. But it can still be a tricky stage for financial security.
"Mid-career is where I see people quietly drift off track," said Hanna Atala, CFP at Betterment. "People are busy, successful and stretched -- which makes it easy to postpone intentional planning."
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Savings Not Keeping Up With Income
While a higher salary can help people feel confident, it doesn't guarantee a successful and comfortable retirement. In reality, savings can fall behind as everyday life gets busier and often more expensive. Housing costs rise, kids enter the picture and everyday spending increases.
Just because someone's income is growing, it doesn't mean their savings rate is keeping pace.
Investment Decisions on Autopilot
Another issue Atala sees is people keeping their investment strategies the same as they always were. Even if it's an investment that made sense in the past, it may not remain a good fit as life progresses.
Mid-career is also when money gets scattered. Retirement accounts, taxable investments, cash savings and sometimes company stock all sit in different places. Without coordination, money can work harder than it needs to while taxes are taking a bigger bite.
What Matters at Mid-Career
Saving consistently matters more than predicting markets. Paying attention to where money is held and how it's taxed starts to have real impact. Career flexibility also becomes more important, especially as burnout and job changes become more common.
Most of all, money needs to line up with what comes next rather than staying tied to an earlier version of life.
Regaining Direction
What if someone feels they're not where they expected to be at mid-career?
"Being 'behind' is more common than people admit -- and it's very fixable," Atala said.
For anyone not quite where they want to be mid-career, she advised that it's less about timing the market and picking the "perfect" investments and more about taking steps toward the future they're hoping for.
Increasing savings gradually but consistently is an excellent first step, prioritizing tax-advantaged accounts. In terms of investments, it's worth looking to simplify and rebalance your portfolio.
Mid-career money decisions often involve competing priorities, and trying to achieve them all at once will likely backfire. Instead, decide which goals matter most right now and accept that others will move more slowly for a while.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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