Typically, this is the age when people begin considering their budget, debt, and savings. It is common at this age to have a considerable amount of student loan debt, very little savings and incur all of the fun new expenses that come with being self-sufficient. Finding ways to save money can be difficult at first, especially early after college when incurring all sorts of new expenses like student loans, rent or even a mortgage. In this phase it is important to focus on creating a debt payoff plan, a monthly budget that covers your expenses and allows for at least some additional savings and to avoid any pitfalls that may cause setbacks as we enter into the next phase.

This is the longest phase of the lifecycle. Typically, debt levels are starting to go down, income is slowly increasing, and you are accumulating a sizeable net worth. Large first purchases may be coming up and you may be focusing on how to optimize your portfolio. You are having the most significant changes in your life as well: getting married, having children, moving, and changing jobs are common in this phase. Each of these changes has an impact and a solution. When clients are in this phase our focus has to constantly adapt and it is common to update financial plans regularly and incorporate tax strategies to minimize your tax burden. This stage is the most important and most often overlooked when it comes to your finances.

This phase is typically when wealth is rapidly accumulating. Here many of life’s largest purchases and expenses are behind you. Children are off to college and out of the house (hopefully). Income should be outpacing expenses, allowing you to save extra money for retirement. If you have not done so by this time it is important to start simplifying your finances. As a Fiduciary CFP© we take a holistic approach by looking at all our clients’ accounts held with us or elsewhere. Clients can sometimes have upwards of 30 different accounts and at this phase, the focus needs to be on optimizing your investments because mistakes early on may not make a large dollar figure difference but in this stage, they can be incredibly costly. Although we recommend hiring a Financial Advisor in the first and second stage, we believe it is necessary to hire one at this phase.

This is the dream… the retirement phase. This is when earned income ends and you are living off your savings ideally spending your time doing whatever it is you want to: travel the world, move to be close to your family or whatever it is that makes you happy. At this point I want my clients to focus on fun and not worry about their financial future and never be forced to go back into the work force. As we enter this phase we start to withdraw from accounts and the risk levels should be lowered while still making sure to keep pace with inflation. This phase is focused on how to generate income from your investments, how to make sure that income lasts for the rest of your life, and how to leave behind a financial legacy for your loved ones.

Managing a business along with personal finances can be overwhelming, especially when considering how many options there are as a business owner. Choosing the right strategy means looking at company revenue, expenses, number of employees, average salaries and much more.

Do you make a lot of money but don’t feel like you have as much as you should? You may be a High Earner but Not Rich Yet…a HENRY. This group faces its own set of hurdles and has become a growing segment of my clientele due to my experience navigating these challenges.