Retirement Planning For 40-Somethings

When you reach your 40s, retirement’s no longer a vague concept… it’s a reality looming in your future, and one you’d better be investing for properly. Are you?

Read These Next

Better Investing

When you reach your 40s, retirement’s no longer a vague concept… it’s a reality looming in your future, and one you’d better be investing for properly. Are you?

A good rule of thumb for a 40-something is to allocate about 10% of your after-tax income to your retirement. Pay special attention to contributions to your company’s 401K. Does your employer match funds? If so, you should certainly be contributing as much as possible… then check out other investments like IRAs.

But, don’t be too conservative, you should be investing in the stock market as well. How much? Well, simply take 100 minus your age, and put that percentage of your retirement funding into stocks. In other words, if you’re 45, you should have 55% of your long-term savings in the stock market.

What about your kid’s college? If you’re in your 40s with a “less than robust” retirement fund, but have also neglected to save for college, as a parent, the temptation is to take care your kids first. But, this is one time when (you’ll be glad to hear) your kids aren’t the priority. Financial advisors agree, saving for your retirement needs to be your focus. Put simply, no one awards scholarships for retiring.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Read These Next

Comments

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,594 more deals!