Financial matters are a great source of stress for Americans of all ages, and Lincoln Savings Bank wants to help relieve some of that stress. We offer you the Lifetime Financial Cheat Sheet! It offers a quick reference for some important financial milestones through various stages of your life.
Your 20s
- Build an emergency fund- it should be 3-6 months of expenses stashed away in a savings or money market account.
- Tackle debt- student loans are kicking in and now is the time to set up a plan to pay them off. Also focus on paying down other debt, starting with the highest interest rates.
- Start a retirement savings- yes, you need to start saving for retirement. We can help you get started with what makes sense for you.
Your 30s
- Increase your retirement savings contributions- by this point hopefully, you’ve worked up the ladder a bit, so the more money you make, the more money you should save.
- Save outside of work - maxing out your retirement savings contributions? Nice! Now, look into opening something outside of work to save more.
- Invest- don’t put all your eggs in one basket; invest wisely by diversifying funds.
- Be liquid- yes, you need a certain amount of investments, but by now you may have a family and kids. Accidents and emergencies happen, so you need readily available funds.
Your 40s
- Continue to max out savings- make sure you’re taking maximum advantage of your retirement savings. If you have kids, this is the time you may want to begin thinking about their education or other expenses.
- Get some advice- talk to a financial planner or trusted investment manager about your investments.
Your 50s
- Play catch up- catch up contributions! Your retirement savings allows you to save $5,500 more once you turn 50; this could be more if you can get a company match too.
- Consolidate your retirement savings accounts- one manageable account is easier to oversee than multiple accounts with varying amounts of money in them.
- Look into long-term care insurance- daily care in a nursing home can burn through retirement savings quickly, so it’s better to be prepared.
- Think about Social Security- you can apply for Social Security benefits when you are at least 61 years and 9 months of age. You should apply three months before you want your benefits to start.
Being responsible with your finances and preparing for retirement is important at every stage in life. For help with planning out your finances, Lincoln Savings Bank is always here to help. We have planning and retirement experts at every location. Set up an appointment today!
