When you’re in the middle of your career, figuring out the best ways to invest isn’t as easy as it should be. Yes, you have more cash in your pocket compared to your early days—but now you have lots of new stuff to think about. Retirement’s on the horizon & the kids have college funds to start worrying about. And let’s not forget the mortgage! Even though it’s a lot, don’t sweat it. Here are twelve investment strategies that successful retirees want mid-career professionals to know about.
Remember that these are based on retiree interviews and is not a substitute for professional advice.
Featured Image Credit: AllaSerebrina/Depositphotos.com.
Max Out Retirement Accounts
Let’s start with the basics—if you’re not already putting as much as you can into your 401(k) or similar retirement accounts, now’s the time to get on it. These accounts come with lots of sweet tax breaks that’ll change how your savings grow over time. For instance, in 2025, you can put up to $23,500 in a 401(k) and if you’re 50 or older, you get to add another $7,500 on top of that. Anyone aged between 60 & 63 can contribute another $11,250.
Consider a Roth IRA Conversion
If you have a traditional IRA, changing it into a Roth IRA might be a smart play. With the conversion, it’s a bit like paying your taxes upfront—but then you get to take your money out tax-free when you retire. As such, it’s worth thinking about. You should definitely check it out if you think you’ll be in a higher tax bracket down the line.
Dabble in the Stock Market
Your mid-career might be the time to venture into the stock market or ETFs (exchange-traded funds). Naturally, stocks aren’t a sure investment. Yet they give you the chance for higher returns so you might want to start with businesses or sectors you know a bit about. Better yet, perhaps consider a robo-advisor to help guide your choices.
Consider College Savings Plans
Those with children should certainly think about starting a college savings plan like a 529. With these plans, you’ll receive plenty of tax perks that’ll help you prep for those future tuition bills. You won’t have to mess up your retirement savings. Rather, you will have all the funds ready to get your kids learning whenever they’re ready.
Try Green Investing
Green investing involves doing good for the planet—and making some cash while you’re at it. With this strategy, you put your money into companies that care about social responsibility & the environment. They’re also usually great at running their businesses ethically. Plus, with more people & businesses going green, such a strategy may really pay off.
Shake Up Your Investment Mix
Since life’s never certain, your investment mix needs to be ready to deal with any sudden changes. Eventually, you’ll retire or your big goals might change. When that happens, it’s smart to tweak your investments to make sure your portfolio matches your current situation & risk comfort. A yearly check-up or a review after big life moments keeps your finances strong.
Go Global with Your Investments
You’ll miss out if you stick to just American investments. Instead, try branching out internationally to improve your portfolio by giving you growth from across the globe. Any emerging markets might just be the thing you need! But remember that it’s still investing at the end of the day—currency changes & political upheaval will cause drama. Stay sharp!
Get Cozy with Deferred Annuities
To keep your cash flow coming when you retire, give deferred annuities a go. You start by feeding them money now and they promise to pay you back with a steady stream of cash later. This is usually when you retire. Think of it like locking in your future income source—but don’t forget to check out the fine print on fees & terms!
Smooth Out the Investment Ride
It’s natural to feel afraid of the investment market. When that happens, dollar-cost averaging may help you relax a little as it involves investing a set amount regularly. You buy more when prices are down and less when they’re up. As such, you’ll feel less stressed over timing and experience better overall growth for your funds.
Keep an Eye on Your Credit Score
You should also keep your credit score in mind because it can either open doors for you—or keep them locked tight. A good score means better rates on loans. It might even make you more hireable. So staying on top of it & fixing any mistakes you spot on your credit report will certainly save you a lot.
Start Small with Investing
Despite what you might’ve heard, you don’t need big bucks to start investing as micro-investing apps let you start small. We’re talking really small—like rounding up your coffee purchase small! With these apps, you’ll dip your toes into investing without feeling the pinch. It’ll give you a crash course in investing basics. And best of all, you’ll make a little money while you’re doing it!
Guard Against Inflation
Inflation is always making headlines and not in a good way. That’s where Treasury Inflation-Protected Securities (TIPS) come into play because they help to protect your investment. Your buying power doesn’t disappear with them. Of course, the interest might stay the same but the payout changes which makes them a great way to keep your money’s value steady over the long haul.
Disclaimer – USA Money Matters does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by USA Money Matters of such content or services. Use your discretion.