Your 40th birthday is a financial checkpoint. If you haven't locked in these five moves, start now before time compounds against you.
**Max out retirement savings.** If you earn $70,000 or more annually, contribute the maximum to your 401(k). For 2024, that cap sits at $23,500. If your employer matches contributions, claim every dollar. People who delay retirement saving by just five years face a $150,000+ shortfall by age 65. Your twenties and thirties offer compounding that your forties cannot replicate.
**Lock in life and disability insurance.** Term life insurance costs pennies per month when you're 35 but multiplies in price by 45. A $500,000 policy might cost $25 monthly at 35 and $60 monthly at 45. Disability insurance protects your income if you cannot work. Most people ignore this until too late.
**Eliminate high-interest debt.** Credit card balances at 18-24% annual rates drain retirement funds faster than almost anything else. Paying $5,000 at 20% interest costs you $1,000 yearly in interest alone. Attack these balances before 40 so your 40s focus on wealth-building, not debt-servicing.
**Review your emergency fund.** You need three to six months of living expenses in a high-yield savings account earning 4-5% annual percentage yield. Banks like Marcus, Ally, and American Express Personal Savings offer these rates. An unexpected job loss or medical bill derails retirement plans instantly without this cushion.
**Reassess your investment mix.** By 40, your portfolio should reflect realistic risk tolerance and timeline. A 20-year retirement runway means you can handle stock market volatility. The "100 minus your age" rule suggests keeping