Financial Planning by Life Stage: Focusing on What Matters
Life is constantly evolving, and your financial priorities should evolve with it. While it can sometimes feel like there’s an overwhelming amount to consider, the truth is that at each stage of life, only certain things demand your focus. Whether you’re just starting out, in the middle of your career, preparing for retirement, or enjoying your golden years, we’ve broken things down into simple categories to help you stay on track. Explore what matters most for your stage of life and focus on the things that will have the biggest impact on your financial well-being.
|
Life Stage |
Financial Goals |
Financial Risks |
Behavioral Considerations |
Investment Management |
General Financial Management |
Concerns |
|---|---|---|---|---|---|---|
|
Young (20-35) |
Building savings Paying off debt Homeownership |
Taking on too much debt Not saving enough |
Managing spending habits Staying motivated to save |
Starting long-term investments Learning about risk tolerance |
Budgeting Building emergency fund |
Job stability Student loans Building credit |
|
Mid-Career (35-55) |
Growing wealth Saving for kids’ education Long-term planning |
Balancing multiple financial goals Underestimating retirement needs |
Avoiding lifestyle creep Staying disciplined with savings |
Rebalancing investments Focusing on growth |
Managing mortgages Planning for kids’ education |
Career changes Health insurance Retirement savings gap |
|
Pre-Retirement(55-65) |
Preparing for retirement Fine-tuning plans |
Outliving savings Healthcare costs |
Avoiding impulsive decisions Staying patient with market changes |
Shifting to more conservative investments Retirement income planning |
Reducing debt Healthcare planning Estate planning |
Longevity risk Long-term care When to take Social Security |
|
Retired (65+) |
Protecting wealth Ensuring income stability |
Healthcare costs Inflation |
Maintaining a sustainable withdrawal rate Managing financial anxiety |
Preserving capital Managing required minimum distributions (RMDs) |
Simplifying finances Managing healthcare costs |
Maintaining lifestyle Healthcare Potential family support |
This grid helps clients see the key areas to focus on in their specific life stage, making financial planning more approachable. You can adjust the details as needed for each section to reflect your approach further.
