Staying On Track for Retirement in Your 40s

• It’s important to keep saving and maintaining a diverse portfolio
• Be sure that both you and your spouse are planning for retirement

You’ve already determined what your retirement goals are and what a roadmap of how to get there looks like. But how can you make sure you’re on track? Below, we’ve created a quick checklist of what to do during your 40s to check your progress.

1. Keep on saving. Earnings tend to rise between age 35 and 45, but, for many people, expenses start to rise around this time, too, as families grow. Saving early and often is key to a comfortable retirement.
2. Remember to keep your investment portfolio diverse. Don’t shy away from stocks just because they hold more risk than bonds. They also hold higher long-term gains, and the short-term losses are often recoverable.
3. Avoid high fees or complex products. As you start to plan for retirement you’ll find a variety of products at your disposal. Chances are, anything that has steep fees or leaves you scratching your head isn’t worth your time or money.
4. Eliminate credit card debt. Credit card debt is like a financial black hole, with extremely high interest charges eating away at money that could, and should, be going towards a retirement account, an emergency fund, your mortgage, or at least something more enjoyable than credit card debt.
5. Make sure your spouse is planning for retirement, too. If your spouse has not begun planning for retirement, open an IRA in his/her name. This rings true even for a stay-at-home spouse, thanks to the benefits of Roth IRAs for lower-income individuals.