Saving For Retirement When You're In Your 40s
In your 40s, you’re hitting your peak earning years and should be well on your way to achieving your long-term savings goals.
But sometimes life can get in the way. We have found that there are many 40-somethings that still don’t have a well-defined retirement strategy. This stage of life often comes with big expenses, such as paying for your child’s college education, which makes it difficult to grow a solid retirement foundation.
Here are four key areas you should be focusing on:
- Reduce debt. It is time to review your expenses (money coming in vs. going out) to see how you can pay down any debt you owe faster rather than having the interest rates continue to pile up meaning you will owe more in the long-run.
- Buy adequate insurance. The cost of health care seems to increase year after year, and we’re living longer and longer. Those are two reasons that long-term care insurance is the preferred choice for many people.
- Review your retirement portfolio. This can be done with your financial planner. In your 40s, you will be focusing on maintaining the right investment mix and begin reducing risk.
- Work with a financial planner. Experienced financial planners have seen it all before, and will work to meet your financial goals.
We would love to support your journey to retire with confidence. Contact our Peak Wealth office at 734-681-7575 to speak with one of our trusted financial planners.