Investing for All AgesWhat to do during your stage of life


The word “investing” typically has a different meaning for everyone. Throughout our lives, we need to make choices regarding our finances, and many of them are based upon our phase of life. For those of you wondering what steps you should be taking given your current age, I have laid out a little road map that may help you in your 20s, 30s, 40s and beyond.

Investors in their 20s: Start saving for retirement immediately. Unfortunately, Social Security benefits may not be a major part of your retirement income. Your generation may need to be totally self-sufficient and view any funds that come from the government as icing on the proverbial cake. Use tax-advantaged savings vehicles like a 401K, 403B, and Traditional and Roth Savings accounts. A good rule of thumb is to save a minimum of ten percent of your income. Pay yourself first – before you buy the new car and home. You have to make savings a priority.

Those in their 30s: Repeat Step One, above. However, if you’re chasing the “American Dream,” you have probably found yourself with a wonderful spouse, and perhaps a child or two. At this phase of life, expenses are increasing quickly and you need to start playing a little defense. You should think about taking care of your loved ones in case you are no longer there to provide for them. Creating a Will, along with preparing medical and financial Powers of Attorney, is essential for anyone who has a family. You also need to think about beefing up your life insurance in an affordable manner – perhaps a term policy. It is helpful to have options to pay for the kids’ college educations and weddings if you’re not there to do it.

Considerations for the 40s & 50s: Between paying for the kids’ sports and activities, and helping out with your own parents, your spending has probably started to spiral higher; hopefully, your salary is keeping up. If you haven’t started saving to pay for college, you may want to start a 529 college savings plan that can grow, tax-free. No matter what, don’t dip into retirement savings to pay for college expenses. Are your kids going to fund your retirement? There are plenty of ways for them to pay for their own college educations, like most of us did back in the day. If you find yourself in the middle class, you may also want to look into long-term care insurance; buying it before age 50 will keep the premiums affordable.

When you reach your 50s & 60s (“The Red Zone”): This is when most people’s salaries are peaking and expenses are returning to normal. A large portion of savings can happen during this period … save as much as is physically possible! Also, if you haven’t yet paid off that mortgage, get a plan in place to do it before you stop working – this will be essential to decreasing debt before retirement.

As always, check with a financial professional for help with setting your retirement date, and to perform an analysis of your potential success.


Securities offered through Sigma Financial Corporation, member FINRA/SIPC.
Investment advisory services offered through SPC, a registered investment advisor.
OLV Investment Group is independent of Sigma Financial Corporation and SPC.


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