In This Chapter

Middle age can be a time of extremes, both positive and negative. For many people, this is an energizing period; incomes have stabilized, the kids are out of the house (or at least getting close), and mature couples have figured out who they are and have a better idea of where they’re going than when they were younger and starting their marriage and family. Many people welcome the feeling of hitting their stride that middle age brings.

But for other people, middle age can be a time of stress, when family transitions, job changes, and health challenges make the years leading to retirement tougher than when they were younger. Regardless of whether you’re doing well and feeling enthusiastic about the future or coping with some personal strain, paying extra attention to your nest egg now will help make sure your retirement years are secure ones.

The 10 years preceding retirement is a crucial period that presents an important chance to focus on growing or catching up with your retirement nest egg savings. You need a plan to manage both investment risk and taxes now and after you retire. That means this is the time to check your asset allocation and the way you have your accounts organized among taxable and tax-deferred retirement accounts like IRAs and 401(k), and tax-free retirement accounts like Roth IRA and Roth 401(k) accounts.