Your Age and Your Finances

Abstract: At different stages of life, different financial issues may be most important.

 Managing your finances is a lifelong process. It usually begins with savings—ideally as a child. Once you have a regular income of your own and have started saving on a regular basis, you'll have to decide how to invest the money you are saving.

Investors in their twenties are often advised to put more of their savings in investments that have potential to grow. Even though these investments may carry more risk of loss, a younger person has time to potentially make up any losses they may experience early on. Conversely, those who are investing for more immediate goals are often advised to put more of their savings in fixed income investments. These may not grow as fast but are less likely to lose money.

Strategies For Common Life Events

Everyone lives their lives differently, and everyone has complicated emotions about money, so investment decisions are highly personal and unique to each individual. Nonetheless, throughout their lives, most investors face some similar situations. Where are you in the cycle? The following are examples of common life events and some things you might consider when making investment decisions.

Your first full-time job

  • Start a savings account to build a cash reserve.

  • Start a retirement fund and make regular monthly contributions, no matter how small.

Marriage

  • Examine your joint investment contributions and allocations, taking into account your combined income and expenses.

  • Consider opening a short-term investment account specifically to help fund your down payment on your home and pay closing and moving costs.

 Children

  • If you don’t yet have life insurance, now’s the time.

  • Start a college savings fund.

New job

  • Review your investment strategy and asset allocation to accommodate a new salary and a different benefits package.

  • Consider rolling over your previous company's 401(k) plan into your new employer’s plan or a Rollover IRA.

Within 10 years of retirement

  • Review your retirement fund asset allocation to accommodate the shorter time frame for your investments.

  • Increase savings for retirement.

Retirement

  • Study your distribution options to maximize assets and tax benefits.

  • Reallocate your investments to provide the income you need while still potentially offering some growth in capital to help beat inflation and fund your later years.

 For more help at every stage of your financial life cycle, talk to your financial professional.

 

~Michelle Mast CFP, CLU, MBA and Meredith Briggs offers securities through AXA Advisors, LLC (member NASD, SIPC) and offers annuity and insurance products through an insurance brokerage affiliate, AXA Network, LLC and its subsidiaries.  For more information, contact them at (804) 287-0236.

 Note: AXA Advisors, LLC does not provide legal or tax advice. Please consult your tax or legal advisor regarding your individual situation.

 GE-35655 (04/06) (Exp.04/08) 

 

 

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