Don’t get caught underprepared for your future

Chances are you regularly monitor your personal health, but what about your financial health? Getting a regular financial check-up may be as important as a trip to the doctor’s office. Here’s what you can expect when you sit down to make a plan for your money:

In your 20s

A financial check-up is sometimes as much a “pep talk” as anything else, according to Addison Avenue Investment Services Director of Investment Services and Registered Representative, RJFS, Scott Hamaguchi. While you are still building your assets and working toward major purchases in your life, setting a financial review every three to five years is likely sufficient.

"Early on, life changes are spread apart a little more. You need to check in to get on your way and set a path forward," Hamaguchi said.

In your 30s

Those life changes begin to gain some momentum. Whether you are thinking about buying a home or a car, or planning an education path for the newest additions to your family, short-term savings may be in your sights. A financial review can lay out savings options that aid you with major purchases, while also forming the best repayment plan for any lingering debt. Aim to check in every two to three years to make sure you are making the most of your money.

In your 40s

You can look down the road more and form long-term plans. Accelerating home payments and planning for retirement might become more of a priority. A financial check-up at this stage will help you maximize your 401(k) plan. Perhaps you added some money to your 401(k) and left it alone, but is that still the most efficient strategy? Do you know which tax savings might be most beneficial for you? Do you have a systematic investment approach? If the answer to any of these questions is “no” or “maybe,” then it’s time to check in with a Financial Advisor.

In your 50s and older

You are entering the pre-retirement phase. It may be advantageous to start layering in life insurance and long-term care plans, as well as mapping out your Social Security and income. Navigating these financial waters alone can be difficult, and Hamaguchi recommends setting a review at least once a year to help ensure you are on track to retire and live comfortably.

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Even when you feel like your financial plans are well organized, Hamaguchi stresses that it is still a good idea to talk strategy with a professional. No matter your age or which major life events are on your horizon, Hamaguchi has seen plenty of people underprepared and blindsided by financial curveballs.

“Most people start out a meeting saying ‘I have just a few quick questions.’ That usually evolves into ‘wait…what?!’” Hamaguchi said. “It’s really interesting; there is a disparity in the amount of information available and the actual education on an individual level.”

Don’t get caught underprepared for your future: Schedule a financial check-up today or give us a call at 800.988.0134 x5856 and speak with one of our Financial Advisors.

Prior to making any investment decision, you should consult with your Financial Advisor about your individual situation.