There are a lot of scary retirement charts that tell you how much you should have saved for retirement. One commonly cited figure by Fidelity Investments says that by the time you’re 40, you should have three times your annual income set aside.
But let’s face it: That number is laughably unrealistic for a lot of people. If you’ve lived paycheck to paycheck for long stretches or carried significant student loan debt, you probably couldn’t afford to invest much in your 20s.
If you’re in your 40s and you’re behind on investing, you’ve missed out on some of those magical compounding years. You still have plenty of time to save, though, but it’s essential that you do so strategically if you want a comfortable retirement. Follow these rules if you’re a 40-something who’s in catch-up mode.