Main goal: Focus on how you invest your money.Savings: 3 times annual salary by age 45
- Rebalance my portfolio. Periodically reset your holdings in stocks and bonds back to your desired mix to smooth out the market's bumpy ride. Keep it simple by rebalancing annually on your birthday or after you get your year-end statements.
- Go over my investment strategy. You still need to invest for growth, but now's the time to start gradually dialing back your stock exposure to guard against another downturn. So if you started your late thirties with an 80% or higher stake in stocks, trim that to 70% or so by your early fifties.
- Make my catch-up contributions. The extra $5,500 you can throw into your 401(k) starting at 50 will not only grow into a surprisingly big stash down the road (see the chart), but will also reduce your taxable income now. You can also stuff a bonus $1,000 a year into an IRA starting at 50.
- Give myself a reality check. Assess whether you're on course for a secure retirement. Several online retirement calculators will tell you the odds of meeting your goals -- based on your current balances, savings rate, and investment strategy. It will also let you know how to catch up if you're off track.
- Consolidate my far-flung retirement accounts. After career changes and job switches, you may very well have left a trail of 401(k) accounts scattered among former employers. Rolling these funds over into an IRA or your current 401(k) will make it easier to manage your entire nest egg.
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