In your 40s…
Draw up a revocable living trust with an incapacity clause
Though it's best to have both a will and a trust, a trust eliminates the lengthy probate court process required to validate a will. A lawyer can draw up the document for you, but you can also create one yourself with several software programs. You'll then need to hire an estate lawyer to review your work.
Save for your retirement before the kids' college tuition
Don't shortchange yourself—the kids can get loans for school but you can't get loans for retirement. Max out your 401(k) and, if you're eligible, a Roth IRA. To find out how much you need for a secure future, visit smartmoney.com/retirement.
Once you're on the track to a comfortable retirement, visit savingforcollege.com for tips on funding your children's education.
By Suze Orman
http://www.oprah.com/omagazine/
