In a recent LinkedIn post, Ryan Gomez, CFP® discusses critical financial benchmarks that individuals should aim to achieve by the age of 40. He emphasizes that many people lack a clear understanding of what being “on track” financially truly entails, leading them to fall behind without realizing it until it’s too late to make significant adjustments.
Understanding the ‘On Track’ Financial Picture by 40
Gomez, CFP® outlines three primary financial goals that are crucial for individuals to target by age 40. He stresses that these milestones are attainable without requiring an exceptionally high income, but rather a solid plan, consistent effort, and the willingness to start early.
Most people have no clue what "on track" looks like.
Retirement Savings: The 3x Income Benchmark
The first key milestone Gomez, CFP® identifies is having three times one’s annual income saved for retirement. He provides an example: for someone earning $200,000, the target retirement savings would be $600,000. This goal necessitates not only consistent saving but also ensuring that investments are structured appropriately. For those not yet at this figure, Gomez, CFP® advises running the numbers to determine a feasible catch-up plan.
The urgency of this goal is highlighted by Gomez, CFP®’s assertion that:
Most people find out they’re behind way too late to fix it.
Consistent Investment: Aiming for 15%+ Savings Rate
Secondly, Gomez, CFP® advocates for investing at least 15% of one’s income. He clarifies that this percentage should be based on the total on-target earnings (OTE), not just the base salary, and should encompass contributions to all retirement and investment accounts, including 401(k)s, Roth IRAs, and brokerage accounts. He suggests that commissions can be a powerful tool to accelerate this savings rate.
Failing to meet this investment threshold by 40 significantly complicates future financial planning, as Gomez, CFP® points out:
If you’re not hitting this by 40, the math gets a lot harder from here.
Early College Savings: The Power of Starting Young
The third crucial goal is to begin saving for children’s college education. Gomez, CFP® recommends utilizing a 529 account for its tax-advantaged growth benefits. He notes that even a modest contribution, such as $100 per month, can begin to compound significantly over time. The core message is to start as early as possible, rather than delaying the process.
According to Gomez, CFP®, the foundational elements for achieving these financial markers are:
- A clear financial plan.
- Unwavering consistency in saving and investing.
- The initiative to start before feeling completely prepared.
Gomez, CFP® concludes by urging readers to ensure they have a comprehensive plan that addresses all three of these vital financial objectives.
📝 About This Content
This article is based on insights shared by Ryan Gomez, CFP® on LinkedIn.
📅 Originally posted on September 4, 2026 | View original post on LinkedIn →