The content appears to be cut off, but the title signals a clear financial planning piece aimed at people in their late 30s. Here's what people approaching 40 should prioritize:
**Max out retirement contributions.** If you haven't already, bump your 401(k) contributions to the legal limit. For 2024, that's $23,500 per year, or $31,000 if you're 50 or older and eligible for catch-up contributions. The same applies to IRAs, which allow $7,000 annually, or $8,000 for those 50 and up. Time remains on your side, but less than you think. A decade of compound growth still delivers meaningful gains.
**Eliminate high-interest debt.** Credit card balances at 18% to 25% APR destroy wealth. Before turning 40, aggressively pay down cards and personal loans. Refinancing is worth exploring if you qualify. Entering your 40s debt-free gives you flexibility for future investments.
**Review your insurance coverage.** Check life insurance amounts, especially if you have dependents. Term life is cheap in your 30s and becomes expensive later. Review your homeowner's and auto policies. Increase umbrella coverage to $1 million if you have meaningful assets. Disability insurance protects your income, your greatest asset right now.
**Diversify your investment portfolio.** If your retirement accounts hold only company stock or one fund family, rebalance. Spread investments across index funds tracking U.S. stocks, international stocks, and bonds. A simple three-fund or target-date fund approach works well. Avoid trying to time the market.
**Build an emergency fund.** Aim for six months of living expenses in a high-yield savings account. Banks like Marcus, Ally, or Discover currently offer