How to Save for Retirement at 40

June 23, 2021 | Peyton Sawyer

how to save for retirement at 40

Figuring out how to save for retirement at 40 might feel scary. You are a little bit late – there’s no benefit of denying this.

That being said, it doesn’t mean you are out of time and can’t achieve a financial goal that would allow you to retire comfortably.

You just need to figure out a game plan and be careful with your finances, and you will also need to keep your hands off your retirement savings even when emergencies happen. This is when getting title loans online can be helpful.

Here’re are 5 tips to teach you how to save for retirement at 40.

How to Save for Retirement at 40

1. Make A Long-Term Plan

To figure out how to save for retirement at 40, you need to understand that you’re playing a catch-up game right now. Is it possible to save? Yes. But how much can you save considering your age and income? How much do you need to save?

What is your final goal and is it achievable or should you adjust your plans?

At this point getting a consultation from a financial expert wouldn’t be extra. However, you can figure out how to save for retirement at 40 on your own by doing a little bit of research and figuring out the average returns on retirement contributions and investments you could get by the age you plan to retire.

2. Get A Roth IRA And Max It Out

Roth IRA is a good way to add to your retirement. It has historically shown to deliver annual returns between 7% and 10%, and for those under 50, the yearly contribution limit is $6,000.

This means just by putting $500 extra a month towards your retirement, you could be earning thousands down the line.

max out 401k

3. Put As Much in Your 401(k)/403(b) As You Can

Ideally, you should try to max out your 401(k) or 403(b) as well. But for the 2021 tax year that’s $19,500 – which is not a luxury you may have.

Orienting by your employer’s match is a good idea – after all any free money is good money.

Other than that, the only advice one can give is to contribute as much as you can.

4. Mitigate Risks As Much As You Can

If you’re figuring out how to save for retirement at 40, then you don’t have time to make any big risks.

In other words, while diversifying your investment portfolio is a good idea, you should try to keep the risks as low as possible – even if it means lower returns in the long run. 

5. Be Smart And Careful About Credit Card Debt

While we’re talking risks – you need to be much more careful about taking on credit card debt while trying to save for retirement at the same time. You just don't have free cash to give away to financial institutions.

Going forward:

  1. Be careful with credit cards, do NOT max them out, and pay the balance off by the end of the month.
  2. Put as much towards any existing credit card debt as you can without harming your retirement contributions.
  3. Do NOT take on additional credit card debt if there’s a way it can be avoided.

Now that you know the basics of how to save for retirement at 40, let’s talk a little more about how to deal with emergencies without harming your retirement fund.

online title loans for emergencies

Using Title Loans to Handle Emergencies

At 40 you should already have an emergency fund that covers around 6 months’ worth of your expenses set up. If not – every unexpected expense could potentially put you in a financial hole.

With no savings you have two options to cover emergencies:

  1. Postpone dealing with the problem, until you’ve saved up enough money to cover it.
  2. Resort to outside help, deal with the problem, and give yourself some time to make back the money.

If you have the luxury of going with the first option – that should be your choice. But if your problem is time-sensitive and postponing it is not an option (say a medical emergency, urgent auto or a house repair, overdue bills, etc.), then you might want to look into online title loans.

Online title loans Utah offers are an option for people who need cash ASAP. They’re easily accessible (at Utah Title Loans, Inc., we accommodate all credit and income situations), easy to apply for, and – most importantly – fast. If you apply for online title loans, you’ll have the answer by the end of the day.

How to Apply for Online Title Loans?

You will need a state-issued ID (or driver’s license) to prove you’re over 18, your vehicle to determine the maximum loan amount you qualify for, and the vehicle’s lien-free title in your name to prove ownership.

Start by submitting an online form on Utah Title Loans, Inc. When it gets processed, you’ll get a call from a loan representative who’ll provide instructions and answer any questions you have.

Take the required items to the appointment the loan representative sets up. They’ll inspect the car and the documents to determine if you qualify for the loan and what amount do you qualify for.

This process typically doesn’t take more than 30-45 minutes, and if you get approved – you’ll get the cash the same day.

Submit Your Online Title Loans Form Today

One of the main ways to achieve a happy and comfortable retirement is to make sure emergencies and everyday happenings don’t affect the funds you save up for your retirement.

This is why online title loans are an option worth considering when you are dealing with an emergency. It’s quite easy and simple to find out if you qualify and how much do you qualify for. Submit your online title loans form today and get your answer by the end of the day!