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A Retirement Planning Itinerary for Your 40s

By Clifton Linton
Writer, mPower

1. 1. Start saving for retirement now. Remember, when you save, you're paying yourself first. You still have plenty of time to build a nice retirement nest egg.
2. 2. Invest aggressively and keep a long-term outlook. You still have 20 years until retirement. You should have a majority, if not all, of your retirement money invested in stocks, said financial advisor David Strege, of West Des Moines, Iowa-based Syverson, Strege, Sandager & Co.
3. Aim to contribute at least 10% of your salary to savings, both for retirement and life. If you have a 401(k) plan at work and 10% is too ambitious, put away at least enough to get a full company match, if one is offered.
4. Open a Roth IRA if you qualify, because this may provide you with tax-free income when you retire. If your income is too high to contribute to a Roth, consider funding a traditional IRA with after-tax contributions to boost your savings.
5. Figure out your children's college education payment strategy. Will you pay for it all, or will your child pay for some?
6. Buy inexpensive term insurance to protect your family and assets, urges certified financial planner Donald Boegel.
7. Pay off consumer debt. Debt is the enemy of savings.

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The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.