So you didn’t get around to developing a retirement plan until you hit 40. That’s not so bad. You still have time to watch your nest egg grow if you make a few strategic decisions. While it’s best to start saving for your golden years when in your 20s, it’s never too late to come up with a plan. According to Bankrate, 35 percent of workers between the ages of 45 to 54 have less than $25,000 in retirement savings, and six out of 10 have less than $100,000 – while paying big bucks for nonretirement expenses like college tuition. You know you should be saving, but how?

Put the Max into Savings

Up your 401(k) to the maximum limit, and take advantage of your employer match program. In order to build up your savings account, you’re going to have to play catch-up to your peers who have been saving for the past 20 years already. In general, you want to aim for saving 10 percent of your salary. If you’re 40 right now and want to save $1 million for retirement, you have to save $10,000 a year at nine percent. It sounds impossible but it can be done.

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Expand Your Savings Potential

Sure, a 401(k) at work is great, but it’s not enough. You’ll have to save independently of that as well. Perhaps you’re not very well-versed in investments, though, or don’t know where to invest. An IRA is a great place to start but you’ll also want to diversify in stocks. This is where an experienced financial advisor comes in, one who can guide you in which investments are aggressive enough to get you caught up now that you’re 40.

Get a Business Going on the Side

A business start-up is an ideal way to grow your savings. Now, with the Internet such an integral part of our lives, it’s easier than ever to start your own company. These days, you don’t have to take out a second mortgage to finance your start-up. All you need is a dream and a little money to start. If you’ve got 100 bucks and a killer idea, you can build your own website, where you can then post blogs, sell ad space, and sell your unique products and services. Not only can you use the profits as a side income to complement your regular salary and pad your retirement account, you can consider selling it off down the road if it gets lucrative – another bonus for your retirement fund.

Be Smart About Allocation

Asset allocation and diversification should be your friends at this stage in your life. You can’t afford to play it too safe, but you still have another 20+ years to retirement so you do have some wiggle room. Experts say to keep your stocks to 80 percent of your portfolio with the rest in conservative holdings like bonds.

Get Help from the Professionals

Overall, as you face the rest of your 40s, keep in mind you have to be more aggressive in your savings techniques than someone in their 30s. Your financial advisor or broker should be able to guide you in terms of how aggressive you can afford to be, where you should put your money and what rates you need to hit your goals. Just be careful: not all brokers have your best interests at heart. In fact, everyone should know a securities fraud attorneyjust in case you fall victim to unsuitable recommendations, excessive or unauthorized trading, and misrepresentation. For professional advice on how to keep your investments safe, contactThomas Law Group today.

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