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?

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.

Learn everything you need to plan your dream retirement

The Only Retirement Guide You'll Ever Need gives you the knowledge you need to retire on your own terms. Sure, you can pay a financial adviser, but this online course gives you total control to create a custom retirement plan around the things that make you happy.

You're going to get expert, personalized advice. You'll have access to the latest tools. And when it's complete, you'll be able to approach your retirement confidently and with peace of mind.

It's time to plan the best years of your life. Let's get started.

Popular Articles

6 Tips to Age-Proof Your Resume
6 Tips to Age-Proof Your Resume

Finding a job isn’t easy — and it sometimes feels like too much experience actually counts against you. These tips will help.

How All 50 States Tax Your Retirement Income
How All 50 States Tax Your Retirement Income

Find out which states are friendly, and not-so friendly, with the money you’ll need in your later years.

7 Reasons You Should Rent a Home in Retirement
7 Reasons You Should Rent a Home in Retirement

Renting is a better fit than owning for many retirees. Here’s how it can pay off during your golden years.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Trending Stories

Comments

913 Active Deals

More Deals