When you are in your 40s, you are in the prime of your career and earning well! By this time you would have paid your dues and probably have a very good salary. However, the kids have grown up and Your house is bigger, thus you have your commitment for your child’s education as well as your Home’s loan repayment.
Ideally, your Nest Egg or Emergency fund now should be around 3 times your annual salary. However Most Americans are well below this threshold.
This is the time to have the perfect balance between your Savings/Investments in fixed instruments and Equities. You can take some risk thus exposure to equities and other high risk asset classes but at the same time need to have enough savings in the fixed income instruments like Bank deposits, or Gold.