PBTC
Updated 2:53 PM CDT, Wed September 2, 2015
Published Under: Home Equity
Knowing how to organize your finances can be confusing at any stage in life. Peoples Bank & Trust knows that as your life continues to change, so do your financial needs. That is why we are offering you The Lifetime Financial Cheat Sheet! The Lifetime Financial Cheat Sheet can help you properly address your finances at any stage in life:
Your 20s
- Build an emergency fund- it should be 3-6 months of expenses stashed away in a savings or money market account.
- Tackle Debt- student loans are kicking in and now is the time to set up a plan to pay them off. Also focus on paying down other debt, starting with the highest interest rates.
- Start a retirement savings- yes, you need to start saving for retirement. We can help you get started with an account that makes sense for you.
- Increase your retirement savings contributions- by this point hopefully you’ve worked up the ladder a bit, so the more money you make, the more money you should save.
- Save outside of work - maxing out your retirement savings contributions? Nice! Now look into opening something outside of work to save more.
- Invest- don’t put all your eggs in one basket; invest wisely by diversifying funds.
- Be liquid- yes, you need a certain amount of investments, but by now you may have a family and kids. Accidents and emergencies happen, so you need readily available funds.
- Continue to max out savings- make sure you’re taking maximum advantage of your retirement savings. If you have kids, this is the time you may want to begin thinking about their education or other expenses.
- Get some advice- talk to a financial planner or trusted investment manager about your investments.
- Play catch up- catch up contributions! Your retirement savings allows you to save $5,500 more once you turn 50; this could be more if you can get a company match too.
- Consolidate your retirement savings accounts- one manageable account is easier to oversee than multiple accounts with varying amounts of money in them.
- Look into long-term care insurance- daily care in a nursing home can burn through retirement savings quickly, so it’s better to be prepared.
- Think about Social Security- you can apply for Social Security benefits when you are at least 61 years and 9 months of age. You should apply three months before you want your benefits to start.
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