To achieve financial freedom and enjoy a comfortable retirement, you need to plan your finances early in your working career. In fact, you should tackle this important task regardless of how young or old you are, whether you are a recent college grad earning that first paycheck or in your golden years. Wise spending, frequent saving, and thoughtful investments can help keep you on track for retirement.
Every age group, however, has different financial goals and challenges. To help you with this, AOG Wealth Management, your experienced financial advisor, shares some handy tips.
For Young Professionals
You are under 40 and jumpstarting your career. While you may make some mistakes as you go along, the right knowledge can help you gain a more solid footing financially. This includes:
- Building a solid credit score. This means understanding the essentials that make up your credit score. Your credit score is vital to quality-of-life investments, like a good mortgage or car loan. That’s why you need to make sure you have good credit practices.
First, you should obtain the ability to use credit and then be sure to pay off your credit card balances or loans in a timely manner. To avoid having a negative effect on your credit, don’t make late payments. Additionally, avoid bankruptcies, collections, and foreclosures. This allows for better financial planning.
- Start investing early and often. Saving early will pay off better in the long run, allowing your funds to grow. This can translate to having much more in retirement savings.
For Individuals in Mid-Career
You might be earning a larger salary (and larger expenses) at this point in your life. With more life events occurring, you need to:
- Apply for life insurance. This protects your family in case something happens to you. You’ll want to explore this and disability insurance if you are the main bread winner in the household. You should also review your home, auto, and disability insurance policies. Securing insurance is generally less expensive if you’re healthy and young. Additionally, be sure to save more than ever at this period in your life to earn that comfortable retirement.
For Individuals Entering Retirement Soon
This is the point where you may realize your retirement savings are behind. Since you’re at the final stages of retirement planning, you should:
- Update your financial plan. Make the appropriate arrangements, including the amount you’ll spend in retirement, where you will live, and potential health care expenses. Make sure to track your spending and even draw out a plan for future income. You should also update your estate plan and beneficiaries. If you don’t know where to start, turn to an expert in wealth management.
AOG Wealth Management can guide you through your finances at any point in your life. No matter the generation, we’ll provide you with effective planning solutions to reach your financial goals. Call us today at (866) 993-0203 to schedule your appointment.