Financial Planning in Your 40s & 50s | Key Strategies

It’s Not Too Late: Catch-Up Strategies for Your Retirement Goals

Generally, our 40s and 50s are considered peak earning years, bringing opportunities to make significant progress toward your retirement savings goals. Even if you wish you had started earlier, there are still smart ways to strengthen your financial future. Here are a few to consider.¹

Lean Into Catch-Up Contributions

Are you nearing the big 5-0? Turning 50 isn’t just any old birthday—it opens the door to “catch-up” contributions. Retirement accounts allow additional contributions once you reach age 50, which can help you accelerate savings.¹

Even small increases can make a difference. Setting up automatic increases that bump up your contribution by just one or two percent a year can help boost savings without feeling a big pinch in your monthly budget.¹

Make the Most of Tax-Advantaged Accounts

A health savings account (HSA) can be another powerful tool. HSAs offer a “triple tax advantage:” contributions are made pre-tax, growth is tax-deferred, and qualified withdrawals are tax-free. They can help you save for medical costs today while also supplementing retirement savings later.²

Some people even treat their HSA as a stealth retirement account, contributing each year with the hope that their HSA balance can continue to grow.²

Remember, if you spend your HSA funds for non-qualified expenses before age 65, you may be required to pay ordinary income tax as well as a 20 percent penalty. After age 65, you may be required to pay ordinary income taxes on HSA funds used for non-qualified expenses. HSA contributions are exempt from federal income tax; however, they are not exempt from state taxes in certain states.

Look Into a Roth Conversion

Depending on your situation, a Roth conversion may be a worthwhile option to explore. Converting part of a traditional IRA to a Roth can create tax flexibility in retirement—but whether that’s right for you depends on a variety of factors, including your income, time horizon, and goals. We can help you weigh the pros and cons based on your situation.¹

Tax, legal, and accounting professionals can provide more detailed insights about the tax implications of a Roth conversion.

Once you reach age 73, you must begin taking the required minimum distributions from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a traditional IRA may be fully or partially deductible, depending on your adjusted gross income.

To qualify for tax-free and penalty-free withdrawals of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after the account holder reaches age 59½. Tax-free and penalty-free withdrawals can also be made under certain circumstances, such as in the event of the owner’s death. The original Roth IRA owner is not required to make minimum annual withdrawals.

Maintaining Balance and Revisiting Risk Tolerance

Your mid-career years might find you juggling more responsibilities than ever: family, work, and a growing list of financial goals. You may be seeking stability while also looking ahead. This is an ideal time to pause, reflect, and review your investment strategy.³

Find the Right Balance

Over time, a portfolio can drift from its original mix of investments. As things shift, your portfolio may become misaligned with your current level of risk tolerance.

That’s where we come in. Together, we can review how your portfolio has evolved, make informed adjustments, and maintain a mix that reflects your comfort level and goals.⁴

Think of rebalancing as an occasional tune-up for your investments. It’s about maintaining discipline and managing risk, not chasing performance.⁴

Check In on Risk Tolerance

Your willingness to take risks can change as your life evolves. A sudden market drop might strike you a little differently at 45 or 50 than it once did. Likewise, an upcoming college bill or nearing retirement might shift your outlook on short-term volatility.³

It’s not about eliminating risk entirely—it’s about matching it to your timeline and comfort level. We can help you review your portfolio’s current risk profile and determine if it aligns with your long-term goals.

<sup>1. Vanguard, October 2025.
2. Fidelity, September 25, 2025.
3. Morningstar, June 25, 2025. 
4. Vanguard, October 2025.</sup>