In your forties you’re that much closer to retirement so it is very important to review your portfolio, realign your risk, and look at your asset allocation. Most importantly however, is to continue to invest on a regular and consistent basis.

If you haven’t already done so, you may want to consider placing money in mutual funds, which is a diversified way to invest. In these funds, professionals manage the money provided by a pool of investors into areas that are typically considered higher-risk and higher-return, such as stocks and bonds. Because a group of people contribute and the money is placed in a variety of places, it’s considered safer than buying individual stocks or shares.

Opening more than one RRSP account can mean more fees to pay, more statements to read and file, and more complexity to track. A disorganized investment strategy could end up lopsided with too many risky investments or too many conservative ones, or even cause duplications. You could even wind up making over contributions and be forced to pay tax penalties. Having a qualified, trusted financial planner on your team is wise.

Tips:

• Work towards a short-term but sizable goal right now, like a trip you have always wanted to go on. Once you’ve saved enough for the vacation and have enjoyed the time off, come back and take stock. This serves to help you identify spending habits and helps you determine how you can save more.

• Try and save 50% of any bonus for your future and be sure to increase your automatic transfer, if you have received a raise.

• Use any tax refunds you receive as a contribution to your RRSP, this will in turn generate a larger refund next year, while increasing your retirement investment.

• Re-evaluate the plans you made in your 30’s and get a detailed analysis of your portfolio.

• Take full advantage of tax shelters such as TFSAs and RRSPs in order to protect your investments and keep the dividends, capital gains and interest income safely piling up.

• Having a balanced mix of equities, bonds and cash is even more important for long-term performance than choosing the right stocks.

• You don’t want debt when you retire; make a payment plan that will get you debt free by the time you are ready to retire.