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There are important financial steps for every stage of life


Financial goals and plans are always in a constant state of change and yet, there are a few important steps everyone should take during each stage of your life. Don’t wait if you have a major life change, take the time to make these important financial changes when the time is right.
 
What are some of the most important steps for someone entering the workforce?
The very first step is to focus on your retirement and enroll in your workplace savings plan on the day you start working. Additionally, this is the time to complete your first estate planning activity which is to create a will and add beneficiaries to all of your financial accounts.
 
Are there specific moves for someone who switches jobs in their career?
It starts with making sure you don’t trade a higher salary for more costly benefits. Also, don’t forgot to move your 401k funds out of your former company. This is a great time to think about engaging with a financial advisor who will help you plot your retirement course.
 
What specific financial moves should newlyweds be taking?
The very first step developing a shared financial plan that includes sharing all financial information. The next two steps involve more estate planning which is updating will and changing beneficiary information. It also may be time to increase your life insurance coverages and decide on health care coverage.
 
Does buying a home create any new financial steps to take?
It is at this stage that you will want to make sure your life and disability insurance coverages are adequate to handle your increased debt burden. If you haven’t created a budget prior to buying a home, it is critical now. This is the only way to make sure you don’t buy a house that you really can’t afford, even if you are approved for a higher amount.
 
What financial moves should be made when people start having children?
Start with reviewing your estate plan, specifically your will. This might include adding guardians and updating beneficiary information on all your financial accounts. If you are fully funding your retirement, then start saving for college education including using 529 plans.
 
Are there critical steps during the nearing retirement years?
Yes and the most important is maxing out retirement contributions followed closely by reducing your debt as low as possible before retirement. Begin thinking about long term care plans and also building your retirement budget.
 
Once a person reaches retirement is it time to relax financially speaking?
Not exactly as it is important to live the retirement budget you developed which means making tweaks to expenses and income as needed. Also, at the beginning of retirement you need to review investment choices and when to begin receiving Social Security with your financial advisor. There may be less to do in retirement but you do still have to actively manage your financial matters.
 


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