4 Financial Tips for People in Their 40s | Richard Banks & Associates, P.C.

Once reaching your 40s, retirement may seem like less of a far-off dream and more of a looming reality. If you’re worried that the right financial moves are not being made to set up a successful retirement, check out these four helpful tips our team at Richard Banks & Associates, P.C. put together for you.

1. Ramp up the retirement fund. Nearly 30 percent of Generation Xers, aka YOU, have no retirement savings, and 21.9 percent report having saved under $10,000. If you’re one of those who have not been able to properly prepare for retirement, now is the time to start getting serious. If possible, begin putting 10 percent of your paychecks toward the company 401k if one is offered. You would also be wise to save independently in a traditional IRA or Roth IRA. Remember, you won’t pay taxes on account earnings with a Roth, but there are income limits that determine if you’re eligible to save in one.

2. Pay off debt. While this is excellent advice at any age, it is even more important for people in their 40s. Establishing a goal of retiring mortgage-free may seem lofty, but with the right strategy and planning in your 40s, could become a reality by retirement age. Mortgages are often our largest expense and going into retirement without that looming over your head will be a great relief. If you have a low interest rate, it could be wise to focus your efforts on debt with higher rates, like credit card balances or student loan debt.

3. Don’t forget college costs. College could be right around the corner for your children and with tuition costs continuing to rise, the price tag probably seems daunting. You’ll have to juggle saving for retirement and college, instead of putting off retirement savings while funding your child’s schooling. Remember, borrowing can be done for college, but can’t be done for retirement.

4. Explore other ways of making money. We’ve mentioned embracing the side hustle and that is especially applicable if you’re in your 40s! Find ways to consult on topics that you are skilled in or especially knowledgeable in. You can also look into remote side gigs that fit in with your schedule.

We hope these four tips can help you along toward your retirement and financial goals!

Worried that debt may be more than you’re capable of paying off? Talk to the professionals at Richard Banks & Associates about the opportunities bankruptcy may provide.