Your 20s: Liftoff

Get off to a smooth start by developing good money habits.

• Create a budget. Review your income and expenses (rent, car payment, school loans, food, utilities, etc.) and come up with a realistic spending plan. Start putting money into an “emergency fund” to prepare for the unexpected.
   
• Establish credit. Apply for a credit card and start developing a good credit history. Pay your bills on time and charge only as much as you can pay off in full when your statement arrives.
   
• Save for retirement. Harness the power of time by contributing to your employer’s retirement plan or an individual retirement account.

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Your 30s: Flight Dynamics

At this stage, your priorities are probably changing, especially if you’re married and are starting a family.

• Set financial goals. You may be saving for a house, college tuition, and retirement all at the same time. Set investment objectives and your time frame for reaching each goal.
   
• Invest your raise. Use some of the extra money to increase your retirement savings account.
   
• Consider your insurance needs. Be sure you have enough coverage to allow your family to maintain its current standard of living if you become disabled or die.

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Your 40s: In Orbit

By now, you may be well established in your careers and on your way to building a comfortable nest egg.

• Check your portfolio. Make sure the investment mix you’ve chosen offers the potential for earning inflation-beating returns.
   
• Make a will if you don’t already have one. Without a will, your property might not be distributed as you would have wanted.
   
• Investigate financial aid options. Grants, scholarships, and loans may be available to help your child pay for college.

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Your 50s: Maneuvers

You may have reached many of the goals you’ve set for yourself, such as paying off your mortgage and helping your children with college expenses.

• Invest your “extra” money. As an “empty nester”, you may have more cash to put away for retirement now that the kids are out on their own.
   
• Review your beneficiary designations (on retirement accounts and insurance policies) and your estate plan. Make sure both are up to date, especially if there have been changes in your life, such as divorce, the death of a family member, or new grandchildren.
   
• Think about retirement. What do you want to do after you retire? Start a business? Travel? Move to a different climate? Planning ahead can make the transition easier.

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Your 60s and Beyond: A perfect Landing

It’s time to protect the assets you’ve worked so hard to accumulate.

• Invest more conservatively. You may want to move a large part of your savings into lower risk investments. But it’s still important – now and in retirement – to keep some of your money in investments that have the potential to outpace inflation.
   
• Develop a retirement spending plan. Consider all the sources of income you’ll have in retirement. Then estimate your annual expenses. If there’s a deficit, consider your options for closing the gap.
   
• Decide when to begin taking Social Security benefits. You can receive benefits starting at age 62. However, the longer you wait (up to age 70), the higher your monthly benefit will be.
   

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