What's Your Age?
Age-based financial wisdom to help you understand what you should be considering right now.
What's Your Age?
Age based financial wisdom
Select your age to see what you should be considering.
Age 18 - Starting Out
Congratulations, you are deemed an adult and have a big world staring you in the face, now what?
- If you went directly into the job market, meet with a financial professional to see if it makes sense to start making a small monthly contribution into an IRA. (i.e. $50/mo)
- If your employer has a retirement plan that they are providing a matching contribution, it is generally recommended that you personally contribute enough to receive the entire matching amount.
- Your “Rainy Day” fund should have 1-2 months living expenses.
- Start saving for a car down payment?
- Be careful not to fall into the credit card trap. Live within your means.
As always, be sure to reach out to us if you have any questions.
Age 24 - Building Your Foundation
You’re establishing yourself in your career and beginning to build real financial momentum. This is one of the most powerful times to start saving – time is your greatest asset.
- Max out your employer 401(k) match – it’s free money.
- Build your emergency fund to 3-6 months of living expenses.
- Begin paying down high-interest debt aggressively.
- Consider opening a Roth IRA – tax-free growth over decades is powerful.
- Start tracking your net worth and set a 5-year financial goal.
As always, be sure to reach out to us if you have any questions.
Age 30 - Growing Responsibilities
Life is getting more complex. You may be buying a home, starting a family, or advancing in your career. Your financial plan needs to keep pace.
- Review and update your insurance coverage – life, disability, and liability.
- If you have children, start a 529 college savings plan early.
- Make sure you have a will and beneficiary designations in place.
- Increase retirement contributions as income grows.
- Consider working with a financial advisor to create a comprehensive plan.
As always, be sure to reach out to us if you have any questions.
Age 40 - Peak Earning Years
You’re likely in your peak earning years. This is the time to accelerate savings and get serious about retirement projections.
- Run a retirement readiness analysis – are you on track?
- Maximize contributions to all tax-advantaged accounts.
- Review your investment allocation – is it aligned with your timeline?
- Revisit your estate plan and update your will and beneficiaries.
- Consider long-term care insurance while rates are still reasonable.
As always, be sure to reach out to us if you have any questions.
Age 50 - Catch-Up Contributions
At 50, the IRS allows you to make additional “catch-up” contributions to your retirement accounts. Take full advantage.
- Maximize 401(k) catch-up contributions ($7,500 additional in 2024).
- IRA catch-up contributions are also available ($1,000 additional).
- Start projecting Social Security benefits and optimal claiming age.
- Begin thinking seriously about retirement income strategy.
- Review your asset allocation for appropriate risk as retirement approaches.
As always, be sure to reach out to us if you have any questions.
Age 55 - Pre-Retirement Planning
Retirement is on the horizon. Now is the time to fine-tune your plan and make sure all the pieces are in place.
- At 55, you may be able to access 401(k) funds penalty-free if you leave your employer (Rule of 55).
- Begin healthcare planning for the gap between retirement and Medicare at 65.
- Start consolidating retirement accounts for simpler management.
- Review Social Security statements and model different claiming scenarios.
- Consider a Roth conversion strategy to manage future tax liability.
As always, be sure to reach out to us if you have any questions.
Age 59½ - Penalty-Free Access
A significant milestone. You can now access retirement accounts without the 10% early withdrawal penalty.
- You can now withdraw from IRAs and 401(k)s without the 10% penalty.
- This doesn’t mean you should – keep tax implications in mind.
- Begin finalizing your retirement income plan and withdrawal strategy.
- Consider whether a Roth conversion still makes sense before required distributions begin.
- Review all accounts and create a coordinated drawdown plan.
As always, be sure to reach out to us if you have any questions.
Age 62 - Social Security Eligibility
You become eligible for Social Security at 62, but claiming early permanently reduces your benefit. This decision deserves careful consideration.
- Claiming at 62 reduces your benefit by up to 30% vs. waiting to full retirement age.
- Run a break-even analysis based on your health and longevity expectations.
- Consider whether you can afford to delay and maximize lifetime benefits.
- Coordinate Social Security strategy with your spouse if married.
- Review Medicare options – you’re still 3 years away at 62.
As always, be sure to reach out to us if you have any questions.
Age 65 - Medicare & Key Decisions
Medicare eligibility begins at 65. Missing enrollment windows can result in permanent premium penalties.
- If you went directly into the job market, meet with a financial professional to see if it makes sense to start making a small monthly contribution into an IRA. (i.e. $50/mo)
- If your employer has a retirement plan that they are providing a matching contribution, it is generally recommended that you personally contribute enough to receive the entire matching amount.
- Your “Rainy Day” fund should have 1-2 months living expenses.
- Start saving for a car down payment?
- Be careful not to fall into the credit card trap. Live within your means.
As always, be sure to reach out to us if you have any questions.
Age 66-70 - Full Retirement Age & Delayed Credits
Full retirement age for most people is 66-67. Delaying Social Security beyond full retirement age increases your benefit by 8% per year until age 70.
- Delaying to 70 maximizes your monthly Social Security benefit permanently.
- Required Minimum Distributions begin at age 73 – plan ahead for the tax impact.
- Review your portfolio for appropriate income-focused allocation.
- Consider charitable giving strategies to manage taxable income.
- Make sure your estate plan reflects your current wishes.
As always, be sure to reach out to us if you have any questions.
Age 72 & Older - Required Minimum Distributions
Required Minimum Distributions (RMDs) from traditional IRAs and 401(k)s must begin at age 73. Missing an RMD results in a 25% penalty on the amount not withdrawn.
- Calculate your RMD each year – it changes based on account balance and life expectancy tables.
- Consider a Qualified Charitable Distribution (QCD) to satisfy your RMD tax-free if you’re charitably inclined.
- Review beneficiary designations – the SECURE Act changed inherited IRA rules significantly.
- Coordinate RMDs with Social Security and other income for tax efficiency.
- Make sure your legacy plan is current and reflects your wishes.
As always, be sure to reach out to us if you have any questions.
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