We know life doesn’t move in a straight line. These milestones serve as general guidelines — not every person will fit perfectly into the decade they reside in, and that’s okay. Our goal is to reach our financial sanctuary, which looks different for everyone. Just as the destination is unique to you, the journey to get there will be as well.
20s — Build Your Foundation
“Set the Tone”- Establish a budget that allows you to save at least 10–20% of your income.
- Start with a 3–6-month emergency fund.
- Enroll in a retirement plan.
- Create a debt repayment plan.
- Understand and build your credit.
- Create financial goals.
30s — Adjust Plan with Income and Life Changes
“More Money, More Savings”- Rebalance your budget.
- Plan to pay down all non-mortgage debt.
- Invest outside of your retirement accounts.
- Look at life/disability/P&C insurance options.
- Begin education funding.
- Have legacy planning documents in place.
40s — Don’t Lose Sight of Your Goals
“Stay on Track”- Stick to your budget.
- Plan to pay off all non-mortgage debt.
- Reevaluate insurance needs.
- Increase outside investments if retirement is on track.
- Do not dip into savings to fund big purchases.
- Update legacy planning documents as needed.
50s — Look at Current Savings and Estimate Retirement Spending
“Catch Up”- Check in on your savings.
- Understand catch-up contribution limits.
- Plan your retirement income needs.
- Tax planning for retirement.
- Look at options for expiring life insurance.
- Consider LTC insurance.
- Update legacy planning documents as needed.
60s — Build Your Cushion
“Homestretch”- Understand “super” catch-up contributions.
- Solidify your retirement paycheck with a tax-smart cash flow plan.
- Strategize for social security.
- Apply for Medicare.
- Consider LTC insurance.
- Build up your retirement cushion.
- Update legacy planning documents as needed.
70s+ — Enjoy Retirement
“You Made It!”- Begin taking RMDs.
- Reevaluate your retirement paycheck.
- Consider tax-efficient vehicles for transferring your wealth.
- Solidify your estate plan.
- Check in with your advisor to make sure you’re on track.
A quick note: We know life doesn’t move in a straight line. These milestones serve as general guidelines, but not every person will fit perfectly into the decade they reside in, and that’s okay. Our goal is to reach our financial sanctuary, which looks different for everyone. Just as the destination is unique to you, the journey to get there will be as well.
