Choosing the right product for your life stage
No matter where you are in your life, you have a lot of decisions to make. When to buy your first house. What school to attend. Is it the right time for a job change? As things change in life, those changes influence your financial decisions, too.
Thrivent Financial has put together a high level overview of the financial information you should be aware of and consider during the various stages in your life. This is intended to be informative only, and everyone’s needs will vary based on their personal situation. You should always seek advice from a licensed professional when considering the purchase of financial products.
In your 20s, you’re usually just starting off in your first job and struggling to make ends meet; beginning to build a financial portfolio is probably not at the top of your to-do list. However, this can be a critical time as it can set your financial foundation for the rest of your life. A top priority should be building an emergency savings account to help you get through an unexpected loss of a job or a large and unexpected financial obligation. This should be separate from your normal savings and should only be drawn from under extraordinary circumstances. Also consider looking into disability income insurance to make sure your income and savings are both protected if you were ever unable to work due to a long-term illness or injury. Disability income insurance will serve you well throughout your career but the sooner you purchase, the better protected you’ll be. Additionally, this can be a time to begin thinking about starting an investment portfolio, if you have the means, as the longer you’re invested the greater potential for long-term growth. Work with a financial professional to ensure your investments align with your appropriate level of risk for your specific situation.
Your 30s are the prime time to continue building a solid financial future. Hopefully you’re comfortable in your career, perhaps have gotten married and may even have begun building a family. This is when your financial options start to open up and you may want to start thinking about life insurance to offer protection for your family’s future against an unexpected death and loss of income. Term insurance for yourself and coverage for your children are usually affordable, easy to procure, and can offer additional financial protection for you and your family.
This is also when you should be getting serious about your savings plans. Retirement savings should be at the top of your mind as you’ve started to make more money in your 30s and are becoming more comfortable navigating your bills and expenses. IRAs, 401(k)s, annuities, and other retirement savings tools are important for you at this stage since the earlier you start saving, the more you’ll accumulate. And it’s never too early to start thinking about college savings for children.
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In your 40s, many people have teenage children, tackle new challenges and opportunities in their professional lives, and have established a level of income they can rely on comfortably. You can start to work with your child to investigate the various options (savings, aid, loans, grants, etc.) to help pay for post-secondary education. This also might be a time to start considering additional life insurance, as your assets and need for protection have grown as you’ve prospered both personally and professionally. Since you’re probably about halfway through your career, you should also start to keep an eye on the retirement horizon and on your overall retirement strategy. Make sure it aligns with your goals and dreams for after your career ends.
Your 50s are an exciting time in your financial life. Your children have probably left the nest and retirement is just around the corner. You should think about establishing a floor of guaranteed income, possibly by purchasing an annuity or insurance product, to meet your essential expenses that will continue into your retirement. This is the time to start considering how you want to live in retirement and beyond. What level of income would you like after you retire and how will you maintain your standard of living? Are you protecting your savings from the high costs of extended care? Whether you’re looking to purchase long-term care insurance or not, this is also a time when you should discuss your extended care plans with loved ones, and how that might affect everyone involved.
In your 60s, your retirement has probably arrived or is right around the corner. This is where managing assets, investments, and financial strategies are critical. Even at this stage of life it is important for you to have some of your financial assets in an investment portfolio carefully managed for growth consistent with your risk profile. Meeting regularly with your financial representative at this life stage will help you stay on track with your financial goals. This is also a time to consider leaving a legacy through a life insurance policy that designates your children or a favorite charity as a beneficiary. The death benefit from life insurance can ensure that your spirit of generosity lives on and the causes you care about will be supported in the future. Another option for securing your future is Medicare supplement insurance, which will help with medical bills not covered by Medicare. This protection can help safeguard your retirement assets from additional costly medical bills.
No financial journey is the same. We all have different needs and goals at different stages of our lives. However, with a solid financial program in place along with the support of a financial professional, you can be prepared to make a lifetime of wise financial choices.
This article was prepared by Thrivent Financial with an article from Broadridge Investor Communication Solutions Inc. ©2014 use by Denver representative Chad Aaberg. He has offices at 501 S Cherry Street in Denver and can also be reached at 303-730-1951.
About Thrivent Financial
Thrivent Financial is a financial services organization that helps Christians be wise with money and live generously. The organization offers a broad range of products and services along with guidance from financial representatives nationwide. For more than a century it has helped its more than 2.3 million member-owners make wise money choices that reflect their values. Thrivent also provides opportunities for members to be even more generous where they live, work and worship. For more information, visit www.thrivent.com/why. You can also find us on Facebook and Twitter.
The information provided in these materials, developed by an independent third party, is for informational purposes only and has been obtained from sources considered to be reliable. However, Thrivent Financial does not guarantee that the foregoing material is accurate or complete. The material is general in nature. Thrivent Financial and its respective associates and employees cannot provide legal, accounting, or tax advice or services. Work with your Thrivent Financial representative, and as appropriate, your attorney and/or tax professional for additional information.
Insurance products issued or offered by Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN, 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc.
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