These crucial years call for action.
Today, retirement may seem nearer to you than it once did.
The following moves might be worth making—and soon.
Catch-up contributions to your retirement accounts.
Starting in the year you turn 50, you may make a total of $1,000 in catch-up contributions to your IRAs each year and put an extra $6,000 per year into a 401(k) or 403(b). Fifteen years of $1,000 catch-up contributions to an IRA should grow to about $30,000 at an 8% annual yield. Fifteen years of $6,000 catch-up contributions to a 401(k) or 403(b) should grow to roughly $212,000 by age 65 if the account returns 8%.
If you want to plan to control some of the destiny of your wealth, draw up a will and evaluate trust options that may help insulate assets from probate.
College savings plans.
If you have not yet explored the potential of tax-advantaged 529 plans and similar accounts to grow a college fund, now is a good time.
The asset allocation in your portfolio should be reviewed periodically; revising it can potentially help you manage risk and maintain your preferred investment style.
Time is of the essence.
The years between 40 and 60 are crucial years in your financial life.
There is no guarantee that an 8% return can be achieved. This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical 8% rate of return used do not reflect the deduction of fees and charges inherent to investing. Asset allocation does not ensure a profit or protect against a loss.
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Tax treatment at the state level may vary.
This material was prepared for LPL Financial and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services.
If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
 marketwatch.com/story/you-can-make-a-lot-of-money-with-retirement-account-catch-upcontributions-2016-03-21 [3/21/16]
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.