Mid‑Career Money Moves: Get the Balance Right Before Retirement

If you’re in your 40s or early 50s, you’re older, wiser, and retirement is getting real. But you’re not done saving yet. This is a turning point for you. The next decade or so can mean the difference between retiring comfortably or just getting by.

For many people, the final 10–15 working years drive a surprisingly large share of total retirement growth—thanks to higher contribution limits, catch‑up contributions, and compounding on larger balances—so the choices you make now carry extra weight.

As you reach midlife, your savings rate and investment mix need attention. Could you save more? What is your tax outlook? Do you need to shift your investment mix to balance risk vs. return? Let’s look at a few of the decisions you can make today that could make a difference for decades.

Are you saving enough?

Saving anything is better than saving nothing, but to improve your tax position and make sure you’re saving enough to meet your needs in retirement, you should consider saving more.

In 2026, you can save a maximum of $24,500 if you’re younger than 50, $32,500 if you’re 50 and older, and $35,750 if you’re between 60 and 63 years old. Even if you can’t reach these maximums, bumping up your savings rate by one or two percent can make a big difference.

A Fisher\SMB retirement specialist can help translate your target lifestyle at retirement into an annual savings number, so you’re not guessing whether your current rate will get you there.

Have you considered your tax outlook?

The decision to contribute to a Roth and/or a traditional retirement plan is all about timing your tax obligations strategically. Roth contributions use after‑tax dollars now for tax‑free withdrawals later, while traditional contributions reduce your taxable income today but are taxed when you withdraw in retirement.

Two factors matter most: your time horizon and your tax bracket now versus later. If you’re more than 15 years from retirement and still in a relatively low tax bracket, making after-tax contributions to a Roth account can reduce your long-term tax obligation. Conversely, high earners may favor traditional contributions to lower today’s taxes, and plan for taxable withdrawals when they’re in a lower tax bracket in retirement.

Many people like the flexibility to choose between receiving pre-tax and after-tax dollars in retirement and contributing both Roth and pre-tax dollars to their plan. While a Fisher\SMB retirement specialist can talk with you about considerations specific to your personal situation, a CPA or tax professional can help you understand the best approach when it comes to taxes.

Have you checked your investment mix?

Your retirement account is made up of different types of investments, usually a mix of stocks, bonds, and cash. Each plays a different role:

• Stocks generally help grow your money faster but tend to rise and fall more sharply in the short term.
• Bonds and cash grow more slowly but help steady your account when markets get bumpy.
• A healthy mix helps you grow your savings without taking on more risk than you’re comfortable with. But over time, that mix can get out of balance.
  • For example, if the stock market does really well, you may end up with more money in stocks than you planned, which could mean more risk than you intended. Conversely, having too much in bonds can carry the risk of your savings growing more slowly than you need them to.

That’s why it’s helpful to check in on your investment mix occasionally. You may need to:

• Move some money from one type of investment to another, or
• Direct more of your new contributions toward the parts of your portfolio that are too small.

The idea isn’t to time the market, it’s to keep your savings aligned with your comfort level for risk and your long‑term retirement goals.

Are you staying on track emotionally?

Market ups and downs can tempt people to make big changes to their retirement investments, especially when retirement starts to feel closer. But reacting too quickly and making changes can steer your savings off course. Selling during market downturns can lock in losses, while chasing fast‑rising investments often means buying in after the growth has already happened.

Removing emotion from your decision-making can be difficult, but it is critical for long-term success. Patience and consistency can make a meaningful difference during the years leading up to retirement. Rather than making impulsive decisions, it’s better to regularly review your account and slowly adjust your portfolio as you near retirement to create a better balance between growth and stability.

The good news is that you have Fisher\SMB available to help you along the way.

Ready to Review?

As the advisor on your company’s retirement plan, you can meet one-on-one with our retirement specialists to help you craft a plan for retirement, while aligning your investment mix, tax strategy (Roth vs. traditional), and risk appetite to meet your retirement goals.

You can click here to schedule a meeting or call us at 888-322-7586.¹