A Financial Planning Checklist for Every Decade

Your 401(k) should be growing steadily, however, don’t lose sight of its growth and progress. At this age, you might be able to afford to invest somewhat aggressively. Your 401(k) provider should be able to counsel you on aligning your retirement planning with your risk tolerance. If you’re maxing out your 401(k) and still want to contribute more, consider an IRA.

A home can be a smart, long-term investment. But before you jump in to a large commitment, be sure that you can afford it now. Lending guidelines suggest that your monthly mortgage payment should be 25% or less of your income.

If you’ve married or started a family, you should consider life insurance. Life insurance is an affordable way to provide for your spouse or children if you die. Generally, the younger you are, the more affordable the insurance premiums, so getting started young can save you money in the long run.

Write a will. If you have a spouse and/or children, it’s important to address family and financial issues that may arise after your death. Depending on your particular financial situation, you may be able to craft something basic using online resources or you may need more advanced advice and direction afforded by an estate planning attorney.

You should revisit your budget quarterly to assess and readjust, if necessary. If you’re finding that you’re spending more than you’re earning, it’s time to tighten up your budget. Continue to pay down your non-mortgage debt and put away money for your future.

• Try our Budget Calculator

As you build your family and cultivate your home, this is a time of your life when you’re spending money. That’s why it’s more important than ever to align your savings, your budget, and your spending to continue your smart financial habits.

If you need help with your financial planning checklist or would like a financial assessment on how we can help save you money, simply call us. We're here to help.

At this age, you’ve got more responsibilities and more expenses to manage. It’s not uncommon to see 40-somethings with credit card and other debt. Start paying your debt down now. Come up with a monthly payment that you can afford. Then prioritize your debt, tackling the higher interest rates first.

By this time, you should have a good gauge of your retirement plan and savings. Meet with a representative to review how your money is invested, set specific goals, and verify that you’re on track. If not, it’s not too late to change tactics to better align with your goals. And if your employer offers a retirement plan, such as a 401(k), be sure you are contributing and taking advantage of any matches that may be available.

Check to make sure your coverage amount and coverage type still suits your needs. If you've had kids, bought a house, or experienced other life changes, you might want to adjust your life insurance coverage.

To protect your family, you should check that your beneficiaries and heirs are named correctly in your will, life insurance, retirement,  and other financial accounts.

In addition to life insurance, you may want to consider other insurance options to see if they are a fit for you. Options include additional life policies, disability coverage, or long-term care insurance.

During this time, we often see members caring for children and parents, which can lead to neglecting their own financial health. It’s more important than ever to align your savings, your insurance, and your spending to continue your smart financial habits.

If you would like a financial assessment on how we can help save you money or guidance with your financial planning checklist, simply call us. We’re happy to help.

• Key Considerations When Saving for Retirement
• Time for a Beneficiary Check Up
• Is Now a Good Time to Refinance My Mortgage?
• Maximize Savings with Certificate Laddering

With responsible money management, your goal should be to have no debt during this time. As you get closer to retirement, you should not only focus on paying down debt, but on avoiding accumulating more. Simply put – living within your means.

It’s more important than ever to have your emergency savings account fully funded. The unknown is still possible and you don’t want to dip into your retirement savings in case of an unexpected event. Again, this is the time to revisit your retirement plan. If you’re behind, start playing catch up by taking advantage of higher contribution limits for your 401(k) and IRAs. If you’re on track, stick to it.

4. Lower Your Risk

Schedule a Complimentary Investment & Retirement Planning Consultation

5. Get Started With Estate Planning

• Ten Things to Do Before You Retire
• Time for a Beneficiary Check Up
• Do I Need a Will?
• Getting Started with Estate Planning
  
  

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  1st United Credit Union cannot give financial, tax or legal advice, please consult a tax advisor or investment advisor to assess your situation. Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC . Osaic Institutions does insurance business in California as Osaic Institutions Insurance Agency. CA Agency License #OH30186. Osaic Institutions and 1st United Credit Union are not affiliated. Products and services made available through Osaic Institutions are not insured by the NCUA or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any credit union or credit union affiliate. These products are subject to investment risk, including the possible loss of value.