Hey, you.

Yeah, you. Are you part of the majority when it comes to the workforce?

That is, are you one of the millions of working 40-year-old Americans? Studies have found that the median age of the U.S. workforce has now climbed to 41.9 years old, which means people in their 40’s are found more frequently throughout various industries.

If you’re in your 40’s, then you’ve likely settled down with a steady job, and maybe you’ve even carved yourself out with a nice career with a company that will provide for you and your family throughout the remainder of your working life.

However, it’s important to note that you’re likely nearing the midpoint of your career. Perhaps you started working younger, but if you’re like most Americans then you likely landed your first steady gig in your 20’s, after college. And, if you’re one of those employees who is contemplating retirement around the standard age of 65, then it’s time that you start seriously planning and making smart moves with your money.

Welcome to part two of our three-part “Smart Things To Do With Your Money” series. In part one, we looked at some smart things to do with money for working adults in their 20’s. This time around, we’re going to be taking a look at a few tips and tricks for the majority of the working class, those in their 40’s.

If you’re still not taking the proper steps towards financial security, then it’s not too late to start. Take a look at a few tips and begin working toward peace of mind today.

Reduce Debt

By now, you’ve likely largely eliminated your student loan debt (or at least taken a huge bite out of it). But, as an adult there’s a good chance you’ve racked up a few other significant debt expenses. Whether it’s with credit cards, medical bills, or even your mortgage payment, the smartest thing you can do with your money at this stage in your life is to chop away at that debt. True financial freedom can not be had if debt is involved, so it’s imperative that you work to eliminate that as quick as possible so that you can truly begin saving as much money as possible. Your future self will thank you.

Max Out Employee Benefits And Retirement Accounts

At this point, you should be contributing the maximum amount allowed by the IRS to both your employer-sponsored 401K account and your individual IRA accounts, if you have them (and you should). Currently, as a 40-year-old you are allowed to contribute up to $5,500 to your IRA annually, which you should certainly be doing. Likewise, the current maximum contribution limit for a 401K is up to $18,500 annually, which is around what you should be hitting at this point — especially if your plan is such that your employer matches your contribution up to a certain percentage.

Establish A Reserve Fund

Having an emergency or backup savings at this point in your life can be hugely beneficial for a number of reasons. As you get older, the unfortunate truth is that an unexpected health event becomes more and more likely. Having an emergency savings fund for these types of events can help you preserve the money you have set aside for retirement and other things. Plus, an added benefit of reserve savings is that they can be used as a college fund for your children, so that they can avoid relying on student loans and experience financial freedom of their own.

Explore Life Insurance

While the main goal is to achieve financial security for your future self, you also want to make sure your family is protected financially in the event of an unforeseen incident. While you’re still in your 40’s, an investment in a life insurance policy will be relatively inexpensive, allowing you to protect those who rely on you under any and all circumstances.

Make High Return Investments

At this point, if you don’t have a financial plan or investment strategy picked out, it’s time to really get going. First, be sure you do all of the proper research and educate yourself completely on the various high return investments out there. Then, you’ll want to sit down and create a strategy that will allow for high returns while minimizing risk.

Making investments in various assets, whether it be fixed annuities, real estate, or stocks and bonds, can help you generate wealth and achieve financial bliss with retirement lurking around the corner.

Even for those in their 40’s, an investment in the Tactical Wealth Fixed Income Fund might be the right move. Our high return investment offers stable, consistent monthly income at rates that are higher than other fixed annuities. Plus, you get to choose the terms that work best for you.

Contact Tactical Wealth to learn more about our fixed income fund and how it can fit into your smart money planning in your 40’s and beyond.