How Much Money Should You Have by 40?
Age 40 is the halfway point to a typical retirement age. The median net worth is approximately $130,000, and the average is $550,000. Fidelity's guideline: 3x your salary in retirement savings. These are often peak earning years, so it's the best time to maximize savings rate and let compound growth accelerate.
Median vs. Recommended
Getting ThereNet Worth Benchmarks at Age 40
Where do you fall among Americans your age? Data approximated from the Federal Reserve Survey of Consumer Finances.
The 50th percentile (median) is highlighted. Average ($550K) is much higher than the median because the wealthy pull the average up.
Where You Should Be vs. Where Most People Are
Where You Should Be
- ✓$195K in retirement savings (3x salary)
- ✓6-month emergency fund
- ✓No high-interest debt
- ✓Saving 15%+ of income
Where Most People Are
- ~$130K median net worth
- ~$65K median household income
- ~Average savings rate: 4–6% of income
- ~39% of Americans can't cover a $400 emergency
Financial Milestones Checklist for Age 40
Recommended Investment Allocation at 40
A general rule of thumb: subtract your age from 110 for your stock percentage. Adjust based on your risk tolerance and retirement timeline.
Common Financial Mistakes at 40
Behind at 40? Here's How to Catch Up
Time is still on your side. Compound interest rewards consistency.
Retirement Readiness Checklist
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Frequently Asked Questions
How much money should I have by 40?
Fidelity recommends 3x your annual salary in retirement savings by 40. On a $65,000 salary, that's approximately $195,000. The median net worth for 40-year-olds is about $130,000. A strong financial position at 40 includes 3x salary in retirement, a 6-month emergency fund, and no high-interest debt.
What is the average net worth at 40?
The average net worth at 40 is approximately $550,000 according to Federal Reserve data, but the median is about $130,000. The large gap reflects wealth concentration — the average is pulled up by high earners and early investors.
Is $200,000 a good net worth at 40?
$200,000 puts you above the median of approximately $130,000. If most is in retirement accounts and your home equity, and you're saving 15%+ of income, you're in a good position. The key is your savings trajectory, not just the current number.
Should I still be mostly in stocks at 40?
Yes. With 20–25 years until typical retirement, a 75/20/5 stocks/bonds/cash split is common. You have enough time to ride out market downturns. Moving too heavily into bonds at 40 means missing years of equity growth.
How can I catch up on retirement savings at 40?
Max out your 401(k) ($23,500 in 2026) and IRA ($7,000). Use an HSA if eligible. Increase income through promotion, side work, or career change. At 50, you'll unlock catch-up contributions ($7,500 extra for 401(k)). Every dollar invested at 40 can roughly quadruple by 65.
Explore Other Ages
Recommended Resources
Tools & books I actually use and recommend
The Psychology of Money
Morgan Housel on why managing money is about behavior, not intelligence. Short, brilliant chapters you'll re-read.
View on AmazonThe Little Book of Common Sense Investing
John Bogle's manifesto on why low-cost index funds beat everything else. Straight from the founder of Vanguard.
View on AmazonInteractive Brokers
Low commissions, global market access, and professional-grade tools. This is where I hold my positions.
Open an AccountSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.
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