Updated: 09 July 2020
While people can make career changes at any age, by the time they’re in their forties, many have found their niche. That often translates into higher earnings and more money to invest.
Here’s how to get the most from it:
Keep a Financial Balance
It’s easy to increase spending to correspond with increased earnings so reflect on whether you are making smart spending and saving choices. If not, maybe now is the time to develop more savvy habits.
Adjust Your Retirement Plan Contribution
Further reward your future self by increasing automatic deductions to your company 401(k) plan and direct deposits from your checking account to your IRA.
Stay Up to Date on Your Accounts
Rollover old 401(k) accounts. If you have changed jobs over the years, rollover your former retirement accounts into a brokerage account or your current retirement account. Make sure to do a direct rollover to ensure that it’s tax-free. Also, make sure you update the beneficiary information to reflect your financial intention.
Include Other Generations in Financial Conversations
Talk to your parents. You may need to help your parents if they do not have plans or resources for their retirement. If so, those factors will influence your spending and saving during these years.
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