9/15/2015 – Five Money Milestones To Hit While You Are In Your 40s (The Washington Post)

One milestone to strive for in your 40s is to have at least three times your annual salary saved in a retirement account, says Andrew McFadden, a financial planner in Fresno, Calif. Rough guidelines from Fidelity Investments, for example, recommend that workers should save three times their pay by age 45 and four times their salary by age 50, if they want to be able to replace 85 percent of their earnings in retirement. (The guidelines are based on a hypothetical worker who earns about $40,000 at age 25 and $70,000 when they reach retirement age.) The exact milestone to hit will vary based on when you want to retire and how much you’ve already saved, says Jeanne Thompson, vice president of Fidelity Investments. Your plan provider may have an online calculator that can help you estimate how much income you’ll have in retirement — which you can use to help figure out if you need to save more.

Read the full article in The Washington Post.