Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

FINANCIAL PLANNING FOR EACH DECADE OF WORKING LIFE*

12/9/2014

0 Comments

 
Editor: Crass Cash
Picture
Your 20s:
1. Save at least 10% of your income as soon as you get a job. 
2. Start a budget so that you can spend less than you make.
3. Start a Roth or Traditional IRA.
4. Start reading books about ETF investing.
5. Setup an Emergency Fund.  Make sure to have 6 months worth of expenses in readily available cash at all times. 

Your 30s:
1. Calculate how much you'll need in retirement. 
2. Adjust your savings rate to meet the amount that you'll need to retire.  
3. Get the right mixture of investments.  Start investing in bonds and learning about them. 
4. Make sure your credit report is squeaky clean. www.annualcreditreport.com
5. Get a non-commissioned professional insurance agent to look at your isurance needs. 
6. Do your estate planning and write up a will. 

Your 40s:
1. Diversify your investments: stocks, bonds, real estate
2. Setup your children's college savings plan, if you have no other debt than your mortgage. 
3. Keep your lifestyle in check.  You might be making the best money of your life, so don't let "lifestyle inflation" creep into your budget.  Live like you did when you were saving plenty of money. 

Your 50s: 
1. Look at paying off your mortgage and make sure you have no other debt. 
2. Check up on your projections and savings for having enough for retirement. 
3. Look at potentially getting long-term care insurance. 
4. Start transitioning your stock market assets to bond assets as the stock market hits new highs.  

Your 60s: 
1. Look to see how much Social Security is going to give you.  Don't rely on Social Security or a pension for your retirement.  But if you've made it to your 60s with it still being around you can now at least see how much they'll give you.  Treat this as your slush fund.  If you get it great, you can splurge, but if not you'll still be fine. 

*This is really just the tip of the iceberg as to what you really need to do, but it's a good start.  If you haven't done this then you need to get on the ball! 
0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.