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You’ve probably heard retirement planning described as “a marathon, not a sprint.” In your 30s, 40s and into your 50s, you’re working hard to keep pace toward your goal. You’ve made strides, but there are still some hills to climb. The steps you take now – with the help of your planner – can pay off with a strong finish later. That means potentially more income and more security for the future you’re imagining.

Here are nine opportunities that can help you build a stronger foundation for retirement at this stage:

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Maximizing Savings and Investment Opportunities

1. Max out 401(k) and IRA contributions

Are you making the most of your 401(k), 403(b) or other employer-sponsored plan? You should contribute at least enough to earn an employer match, if available. If you don't, you’re leaving free money on the table. Next, look to max out your contributions, even if it happens gradually over a few years. Then, if you still have funds available to invest and you’re within the income limitations, aim to maximize tax-deductible contributions to an IRA.

The 401(k) contribution limit in 2025 is $23,500. If you turn 50 or older, you can add a catch-up contribution of $7,500, raising the limit to $31,000. That can be big, especially if you got a late start in saving for retirement.

For IRAs – traditional and Roth – the contribution limit is $7,000, with an additional $1,000 in catch-up contributions if you’re 50 or older. Want both kinds of IRAs? No problem. But the annual contribution limit applies across all your IRAs, not per account.

2. Explore a backdoor Roth IRA – or mega backdoor Roth IRA

Roth IRAs offer a tax-smart way to save for retirement, but they have income restrictions. If you’re filing as single in 2025 and your income is between $150,000 and $165,000, the maximum contribution you can make is “phased out” or reduced. And you can’t make a contribution at all if your income is over $165,000. If you’re married filing jointly, that “phase out” range is between $236,000 and $246,000.

The backdoor Roth IRA is a strategy that lets high-income earners convert a traditional IRA into a Roth IRA. Generally, you’d start by opening a traditional IRA or using an existing one to make a nondeductible contribution (staying within the contribution limits mentioned earlier). Once you’ve made your contribution, you can immediately convert the account into a Roth IRA to take advantage of future tax-free distributions and the opportunity for tax-free growth – because Roth conversions don’t have any income limitations.

There’s also what’s called a mega backdoor IRA. With this strategy, you contribute after-tax money into your employer-sponsored 401(k) plan, then convert that money into a Roth, either within the 401(k) account or a Roth IRA. The “mega” part? It can provide a significant boost to your retirement savings because 401(k) plans have a maximum contribution limit of $70,000 in 2025 between employer and employee contributions.

A word of caution: There are also potential tax implications and rules to be aware of with these strategies, and we don’t recommend executing them on your own. Discuss backdoor IRAs with your planner and tax professional to fully understand the pros, cons and risks involved.

3. Contribute to a health savings account

An HSA is a tax-advantaged way to save for what may be your biggest expense in retirement. In fact, HSAs have a triple tax benefit: Contributions are tax deductible, earnings are tax deferred, and distributions are tax-free if you use the money for qualified medical expenses (like deductibles, copayments and coinsurance).

HSAs are commonly available through workplace benefits programs, as well as banks, credit unions and other financial institutions. However, you must have a high-deductible health plan to contribute to an HSA.

You can opt to use your HSA for today’s medical expenses. Or you can put money into your HSA (known as the “shoebox rule”), invest it and give it an opportunity to grow. Once you open an HSA, it’s yours, even if you have it through work and you leave your job. And the money stays in the HSA until you use it.

In 2025, the HSA contribution limit is $4,300 for self-only coverage and $8,550 for family coverage, with a $1,000 (per spouse) additional catch-up contribution available if you’re 55 or older.

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Protecting Your Income and Managing Risk��

4. Review disability and life insurance needs

Building up savings is only one facet of smart retirement planning. Without the right protection, you could put your savings at risk. And maybe your spouse’s.

Think a disabling medical condition – one that could prevent you from working – won't happen to you? A 20-year-old has a 1-in-4 chance of developing a disability before retirement age. Short-term disability insurance can replace your income for a brief amount of time – about three to six months. These policies are often included as employee benefits. Long-term disability insurance takes it from there, with coverage that can last from many months to several years, usually replacing between 40% to 65% of your income. Your employer may offer LTD coverage too, but you can also buy your own policy if your employer doesn’t provide it, you’re self-employed or you need to supplement what they’re offering. Some employers offer employees an option to pay income tax on their disability premiums, which makes the benefits income tax-free at a time when cash is needed the most.

Then there’s something no one wants to think about: If you died unexpectedly, could your family pay the mortgage and other bills without your income? Would your kids still be able to go to college? Not having life insurance could force your spouse to tap into their retirement savings. You may have some coverage through work, but you’re likely to lose it if you leave the job. Your planner can review your coverage needs and discuss options. The good news is, using a level term policy to meet your needs may be more affordable than you think.

5. Build up your emergency fund

Another question to ask yourself: Do I have enough cash available for life’s curveballs? A job loss. An unexpected home or car repair. A large medical bill. Or even something happy, like an invitation to your best friend’s destination wedding. Surprises happen, but they don’t have to put your long-term finances in jeopardy. At this stage, setting aside a minimum of six to 12 months of living expenses in a cash emergency fund can give you the cushion you need. So you won’t have to rely on other funds – like your retirement savings.

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Estate and Wealth Transfer Planning

6. Create a basic estate plan

When you’re still in mid-career, it might be easy to ignore estate planning. Maybe you think it’s just for older or super-wealthy people. The fact is, estate planning is for anyone who wants to have control over where their assets end up someday.

It’s never too early to take care of some basics. Your planner can help connect you with an estate planning attorney to draft a will if you don't already have either of these. Another essential step to take right now: Review the beneficiary designations on all your accounts – 401(k)s, IRAs, bank and brokerage accounts, annuities, life insurance policies – to make sure they’re up to date. Marriage, divorce, the birth of children and other life changes may have happened since your last update. Or maybe you haven’t designated anyone yet. Now’s the time.

Updating your beneficiary designations could even be the most important estate planning action you take now. Because although a will is a key tool for distributing assets, a beneficiary designation will override it.

7. Consider a wealth transfer strategy

Creating a tax-smart wealth transfer strategy is another goal you can accomplish during your working years.

One approach is to gift assets to your loved ones while you’re living instead of waiting until you pass away. You can give away a certain amount each year – $19,000 per recipient in 2025 – without reducing your federal lifetime estate tax exemption amount of $13.99 million. If you’re married, the limit doubles to $38,000 per recipient.

Have a cause near and dear to your heart? Through charitable giving, you can transfer wealth while potentially reducing your income tax liability. There are multiple ways to accomplish this, including donor-advised funds and direct gifts of cash, stock or property.

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Managing Equity Compensation

8. Develop a stock option and RSU strategy

If your company has awarded you stock options (the right to buy company stock at a specified price) or restricted stock units (a grant of stock you can receive if certain conditions are met), congratulations. Depending on the size of the award and the stock’s performance, equity compensation can have tremendous growth potential and play a big role in your overall retirement plan.

But, like any other asset, you’ll need a strategy to help make the right moves with your equity compensation. Your planner can help you understand the tax implications of exercising options and selling shares. We can also help you avoid risks, like investing too much in company stock. We usually recommend having no more than 5% of your portfolio in any one stock, especially your employer’s stock, because of potential volatility. You can also lose your job because of poor company performance – at the same time that shares you’re heavily invested in are losing value.

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Balancing Family Responsibilities

9. Plan for sandwich generation challenges

At this point in your life – or sometime soon – you could be juggling the financial demands of caring for your kids and your aging parents. The real challenge? Doing both while keeping your own retirement planning and everyday finances on track.

Between college and retirement, we believe funding your retirement should come first. While there are other vehicles for college savings, there’s no financial aid for your retirement. When it comes to caring for aging parents, talk to your planner about long-term care insurance and other funding options, and the impact on your finances if you or your spouse had to take time off from work to be a caregiver. But an even more important conversation? The one your family should have about your parents’ wishes and how to give them the best kind of care you can.

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Build a Strong Financial Foundation Today

Retirement planning in mid-career – until about age 55 – is about forming and building a foundation of financial security that can last for decades. Of course, the earlier you start, the better prepared you’ll be to enjoy the retirement you want someday. Talk to your planner to help make sure you’re taking advantage of opportunities that can help maximize your savings, protect your income and preserve your wealth.��