What are the main signs of a mid-career financial identity crisis?

The main signs include persistent financial anxiety, inconsistent spending habits, feeling overwhelmed by financial decisions, a sense of stagnation despite working hard, and a growing disconnect between your financial actions and your personal values or life goals.

How can I identify my core financial values?

To identify your core financial values, reflect on what truly brings you satisfaction and purpose. Consider what you would do with your money if resources were unlimited, or what you regret spending money on. Common values include security, freedom, family well-being, impact, experiences, and personal growth.

Should I pay off student loans or save for retirement in mid-career?

This is a common dilemma. Generally, prioritize high-interest debt first. If your student loan interest rate is higher than your expected investment returns, focus on paying down the loan. However, always contribute enough to your 401(k) to get any employer match, as this is free money. A balanced approach often involves simultaneously contributing to retirement and aggressively tackling debt.

How often should I review my financial plan?

You should review your financial plan at least annually. It's also crucial to review it after any significant life event, such as a change in marital status, a new job, the birth of a child, or a major purchase. Regular reviews ensure your plan remains aligned with your evolving life and goals.

What is the difference between a fee-only and fee-based financial advisor?

A fee-only advisor is compensated solely by client fees, eliminating conflicts of interest from product commissions. A fee-based advisor earns both client fees and commissions from selling financial products, which can introduce potential conflicts. For unbiased advice, many prefer fee-only advisors.

Mid-Career Financial Identity Crisis: Strategies | One…