Broker Check

Blodgett Wealth Management: Setting Financial Goals Based on Your Age

December 15, 2020

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