Investing in Your 40s: Missed the Boat or Right on Time?

Let’s be honest — if you’re in your 40s and haven’t given your retirement plan much attention, it’s easy to feel like you’ve missed your chance. Maybe you enrolled in your university’s TIAA or Fidelity 403(b) when you started, picked a couple of funds, and… never really looked back. Now you’re wondering if you can possibly catch up. Here’s the truth: you absolutely can!

Your 40s are actually one of the best decades to get serious about retirement. You still have earning years ahead, you can start contributing more, and—thanks to compound growth—you still have time to make a big difference.

Step 1: Find out where you really stand. No more guessing. Look at your balance, your contribution percentage, your investment mix, and (this one’s important) the fees you’re paying. Hidden fees can eat away at your returns. A quick portfolio review can help you see if your money is working as hard as you are. The first step to catching up is getting a clear picture of your starting point. That means logging into your TIAA or Fidelity account and checking:

• Your current balance — This tells you where you are now, but don’t get discouraged if it’s lower than you hoped.

• Your contribution percentage — Many people are shocked to find they’re only putting in 3–5% when they thought it was “enough.” Your contribution rate is one of the biggest levers you can pull.

• Your investment mix — Are you 90% in stock funds without realizing it? Or sitting in a cash equivalent earning next to nothing? Your asset allocation has a huge impact on your growth potential.

• The fees you’re paying — This one’s sneaky. Expense ratios, administrative fees, and account maintenance costs can quietly chip away at your returns. Even a 1% fee difference can cost you tens of thousands over time.

  
  

💡 Provizr Tip: Our free Blueprint digs into all of this for you, translating the jargon into plain English so you can see exactly what’s helping and what’s hurting your plan.

Step 2: Turn up the savings dial. If you’re saving 5% now, push it to 6% this year, 7% next year, and so on until you’re closer to 10–15%. You might not even notice the difference in your paycheck—but you will in your future account balance.

Also, make sure you are taking advantage of university matching contributions if available. That’s free money.

Did you get a bonus, an extra stipend payment, or a big tax return? Use these windfalls to make one-time boosts to your 403(b).

These little increases over the years can add hundreds of thousands to your account.

Step 3: Keep your plan moving. Markets change. Life changes. Your investments should change too. Rebalancing once or twice a year keeps your risk level where it should be so you don’t accidentally get too aggressive (or too conservative).

Your retirement plan isn’t “set it and forget it” — at least, not if you’re playing catch-up. Make sure to:

• Rebalance once or twice a year to make sure your risk level matches your comfort zone and timeline. For example, if stocks have done well, they might now take up a bigger chunk of your portfolio than intended.

• Adjust your asset allocation as you get closer to retirement — not all at once, but gradually.

• Review your account after major life changes (marriage, divorce, promotion, moving to a new university) to keep it aligned with your goals.

The market will shift. Your life will shift. The key is to make sure your portfolio shifts with them — so you’re never accidentally taking on more risk than you can afford or missing out on growth you still need.

You’re not behind—you’re just starting your “catch-up era.” And with the right plan, this decade can be the turning point that sets you up for the retirement you want.

Not sure if your TIAA or Fidelity 403(b) is doing its job? Our free Provizr Blueprint shows you exactly where you stand—and how to get on track.