No matter what age you are, you should be planning for the future and saving at least a portion of your earnings. Once you have hit the big Four-O, you really need to start seriously thinking about how much you have saved. You’ll need to find that time because before you know it, another decade will have whizzed by, and you’ll be in your 50s.
Experts say that you should have three to four times your average salary saved by the time you reach your 40s. The median amount saved by folks in their 40s in the United States is currently $63,000. By your 50s, that number has jumped to $117,000, almost double the amount you should have put away in your 40s.
Your 40s is a time to take investment seriously. “Get professional advice, and don’t take unnecessary risks with your money,” advises Martin Walcoe, president of David Lerner Associates. “Look for the sensible middle ground of investing. It’s better to start planning sooner rather than later.”
If you have reached 40 and have not yet started saving, don’t panic. At this age, you can sock $17,000 a year into a 401k account. If you assume the annual rate of return that Warren Buffet predicts of 7 percent, by the time you reach retirement age, you’d have a very comfortable nest egg.
No matter what your investment situation, you’ll want to start clearing your debt. If you had student loans and paid them off, start investing the money you would have paid to the loan company. If you have other debts, it is time to start getting rid of those as well.
The overall amount of average debt for GenXers is almost $40,000. That includes home loans, car loans, and credit card debt.  The average credit card debt for folks in this age range is between $8,235 and a shade over $9,000.
If you need to start on your investment journey, get solid advice as soon as possible. It isn’t too late to take control of your situation.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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