In Your 20s
- Develop a marketable skill
- Establish a budget
- Get insured (auto, renters, health)
- Make a debt-repayment plan
- Build an emergency fund (3-6 mo)
- Start saving for retirement (automatic 401k contributions, Roth IRA)
- Build up your credit history (pay on time)
- Quit the "Bank of Mom & Dad"
- Clean up your online presence
- Get key financial docs in order (birth certificate, SS card, insurance, accounts, usernames/passwords)
In Your 30s and 40s
- Advance your career
- Add/adjust your insurance coverage (home, life, disability)
- Pay off non-mortgage debt
- Increase your emergency fund balance
- Save at least 15% towards retirement
- Diversify and rebalance accounts
- Diversify your savings strategies (taxable vs tax-deferred vs tax-free
- Monitor and improve your credit
- Create estate docs (Will, Trust, Dur. Pwr of Attorney)
- Establish college savings (529 plan)
- Revisit budget and live within your means
In your 50s and 60s
- Consider your retirement vision (working, volunteering, travel, vacation home/rental, downsizing)
- Pay off mortgage and other debt
- Redirect cash flows (paid mortgage, kids/education expenses)
- "Catch-Up" on retirement contributions
- Review beneficiaries and title assets to avoid probate
- Teach your kids to be fiscally fit, independent adults
- Understand Medicare and health insurance options/costs
- Organize and store financial/legal documents
- Identify your basic vs discretionary expenses
- Run a retirement forecast to see if you are on track
- Re-evaluate your risk tolerance & time horizons
- Prepare for business sale & succession (tax, legal, training/transitioning)
- Make a plan for Long Term Care
- Consider your Legacy
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