Working on it.... Your 30s through your 40s

At this stage, you’re likely full stride into your career and your income probably reflects that. The challenge to saving for retirement at this stage comes from large competing expenses: a mortgage, raising children and saving for their college, or perhaps financing your business.

As when you were younger, it’s critical to find a way to squeeze out dollars for retirement. Time is still on your side, though you’ve begun to lose some of your compounding power. Try to invest a minimum of 10 percent of your salary towards retirement.

One of the classic conflicts is saving for retirement versus saving for college. Most CFP® professionals will tell you that retirement should be your top priority. Your child can usually find financial aid and help fund their education. You’ll be on your own for retirement.

Some expenses shouldn’t be avoided, however. Financial catastrophes could seriously derail your retirement plans, so be sure to have adequate life insurance (for your spouse’s retirement), disability insurance to replace lost income and adequate health insurance. A cash emergency fund also can help avoid selling tax-deferred investments should you need the dollars.

Your investment portfolio probably shouldn’t change much from when you were in the Getting Started stage. You still have considerable time before retirement, even if you plan to retire early.

CAUTION: Try to avoid tapping into your retirement accounts for such things as a home down payment or college. You can end up paying income taxes, penalties and you’ll suffer the loss of further tax deferral.