How to build wealth at any age

No matter your age, there are important financial decisions to make. This guide to key money moves for each decade can help you lay a solid foundation toward long-term financial security.

How to build wealth in your 20s

While you may have had a bank account for years, your financial journey often starts in your 20s. You’ll learn to manage your financial independence and start planning for both short- and long-term financial goals. Here are four wealth-building steps to start in your 20s. 

Establish your financial independence.

• Your 20s are about establishing a foundation as you gain financial independence.
• Set a budget that balances your needs, wants and wishes.
• Create a plan to pay off debt and stick to it.
• Begin building your credit.
• Start an emergency fund of up to three months of living expenses.

Set a course for your financial future.

• It’s never too early to start saving for retirement or get started investing.
• Joining an employer-sponsored retirement plan now can reap rewards down the line. Try to contribute at least enough to receive your employer match, if one is offered.
• If a career change includes a change of employer, consider your options for your employer retirement plan.

What insurance you need in your 20s.

• Insurance coverage is an important part of your financial foundation. The first step is to learn about the different types, from health insurance to disability insurance.

Boost your financial well-being.

• Start your journey toward financial health by setting goals, tracking your spending and assessing the assets you already have.
• Here’s a 30-day checklist to start building these habits.

How to build wealth in your 30s

Once you hit your 30s, you’ve probably established your career and may have started a family. Now is the time to think more deeply about your financial goals – and about planning for retirement, even if that feels far away. Here are three financial tasks to tackle in your 30s.

Set your personal financial goals.

• Do you have dreams you’d like to accomplish? It’s time to prioritize your financial goals, from paying down debt and buying a house to starting a family or business. 
• A budget can help you keep track of all your financial goals.

Continue to save for retirement.

• Try saving 10-15% of your pre-tax income through an employer-sponsored retirement plan or individual retirement account.
• A Health Savings Account could save you money and benefits into retirement.

Protect yourself and loved ones.

• Consider long-term disability or life insurance to protect you or your loved ones in the case of unexpected illness, injury or death.
• A financial professional can help you select the best policy to meet your needs.

How to build wealth in your 40s

Focus on fine-tuning your financial goals in your 40s, including investing as much as you can for your retirement. You’ll also want to think about your loved ones’ financial future and adjust your financial plan as life events happen. Here are three financial tasks to accomplish in your 40s.

Explore your options when you’re earning more.

• Your 40s are your prime earning years, and that comes with financial options, from paying down debt to charitable giving to bolstering your emergency savings.
• Life events happen—supporting children or parents, divorce, marrying again—so check in with your financial plan as your life evolves.

Expand your retirement savings.

• Take advantage of your higher income to max out retirement contributions and broaden your investment portfolio.
• Try to keep those contributions up while establishing a college savings plan for your children.

Protect your #1 financial asset: you.

• If you haven’t by now, consider buying life insurance.
• Especially if you have children, now is also the time to create an estate plan, including a will, healthcare directive and more.

How to build wealth in your 50s

You may still have a decade or more before retirement, but time flies. Think about what you envision for your retirement and beyond, including long-term care and your overall legacy. Here are four financial aspects to consider in your 50s.

Make the most of your empty nester lifestyle.

• Are your children out of the home? Encourage their financial independence.
• Meanwhile, review and adjust your empty nest lifestyle if needed; cut down on your expenses, reconsider taking on debt, and save when you can. 

Envision your retirement needs.

• It’s time to get practical about retirement. Envision what you’ll need in retirement and take advantage of 401(k) and IRA catch-up contributions.
• Make sure your asset allocation and investment risk align with your financial plan.

Consider your long-term care needs.

• Your premiums will be at their lowest now, so consider purchasing long-term care insurance to help with future medical or personal needs.

Picture the legacy you want to leave.

• Your estate plan is the main way to leave the legacy you want, so make sure to regularly revisit your will and your designated beneficiaries on specific assets, such as insurance policies and retirement and other investment accounts. 
• Determine if setting up a trust makes sense for your situation, as well as making a plan for charitable giving.

How to build wealth in your 60s

Retirement is imminent, and getting advice from a financial professional is critical. You’ll need to consider future healthcare costs, as well as insurance needs and estate planning, including wills and trusts. Here are four financial decisions to make in your 60s.

Prepare to make the leap to retirement.

• Review key milestones before you retire.
• Decide if you want to keep working after retirement.
• Make a plan for your retirement income—including when you’ll take Social Security—and try a practice run living off your projected income. 

Apply for Medicare.

• For most people, Medicare eligibility starts three months before turning 65 and ends three months after turning 65. You’ll have the option to buy supplemental coverage, as well as coverage for prescription drugs.

Re-evaluate your insurance portfolio.

• Review your life, disability, long term care and medical insurance policies to ensure they still meet your needs into retirement.

Talk with family about estate planning.

• Your estate plan spells out the legacy you’ll leave loved ones, so get them involved in the conversation.
• Discuss topics like who should be beneficiaries for certain assets or who will take on a family business.

When it comes to managing your finances, you don’t have to go it alone. Learn how our integrated approach to financial planning can help you work toward the life you want.