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 Investing Dos and Don’ts at Every Age

By: Bobbie Salow, Senior Practice Manager

Morey & Quinn Wealth Partners are dedicated to helping you achieve your well planned life at every age.

As your financial planning partner, we take the time to get to know your lifestyle, goals and values. We specialize in crafting innovative and thoughtful financial strategies that will propel you toward the future you’ve envisioned, no matter how far away that is.

Here are some of the top investing strategies to embrace-- and avoid--at every age. Follow these simple guidelines to stay financially healthy throughout your life.

 

In Your 20's

Do

Don't

Take advantage of company benefits
At this age, you may not consider your first job to be permanent, but you can still leverage perks like 401K matching, tuition reimbursement, or company stock options for a great head start.
Don't prolong your student loans
Get started making loan payments right away and stay consistent to avoid paying extra interest or high penalties over the life of your loans. Plus, you’ll pay them off that much faster.
Soak up financial knowledge
Glean everything you can from online tools, articles, financial calculators and webinars. Learn as much as you can about retirement accounts, investing, budgeting and the importance of saving. Your Morey & Quinn Financial Advisor will also have many educational resources to guide you. Building a foundation of knowledge now will benefit you for the rest of your life.
Don't put off retirement savings
Time is on your side! When it comes to your retirement account, the most valuable asset is the ability to start early and let your savings accumulate with compound interest over time. In your 20's, start investing at least 3% of your income in a dedicated, tax-sheltered retirement account. It does not take a lot of money to start building your wealth. Talk to your Morey & Quinn Advisor about the best investments for long-term growth.

In Your 30's

Do

Don't

Segment your savings
Start a dedicated savings plan and organize your savings around your goals. It’s wise to set up an emergency fund, and plan ahead for expenses such as travel, a house remodeling project, or children’s college funds.
Don’t bite off more than you can chew
When considering big purchases like a new home, a wedding, a new car or going to graduate school, keep in mind that taking on more debt than you can afford will hold you back in the long run. Buying a home is a great investment, but if it’s bigger than you need, you could be saddled with higher mortgage payments, taxes and utility bills that don’t leave room for much else. Taking on more college debt is not always a good idea, especially if a degree doesn’t necessarily get you into a new field or increase your salary. 
Plan ahead for your future
Create and work toward financial goals that you can reasonably reach in 5, 10, even 20 years. In the future you will be thankful you did. And time flies - it will be here before know it!
Don't compete with others
When facing a big expense, it may not be worth taking on the extra debt, even if that means not keeping up with the Joneses. Although you may be tempted to splurge when you see peers with bigger homes, more savings, or better jobs, it's not a race. Stay focused on your own goals. The only person you need to keep up with is yourself.

In Your 40's

Do

Don't

Pay more on your mortgage
In your 40's, add all you can to your monthly mortgage payments. Paying more every month will help you get through the interest and start paying on principal.

Don’t put off your will
You’re never too young to outline your preferences in a will. Clarify your wishes now, so your loved ones will not have to worry. With a little advance planning, you can make sure your financial assets will make a difference in the lives of your loved ones.

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Get rid of debt
Take a serious look at credit card debt or student loan debt. clear it out so you can be prepared for the next decade of life, whatever it brings (job loss, health concerns, kids going to college) don't have extra debt hanging over your head.
Don't be afraid to switch careers
At this point in your life, you can be confident in your experience. Don’t be afraid transition to a new job or a new field where you can be equally, if not more successful.

Put the maximum savings into your retirement
Your 40's are a great time to really build up your retirement account. Perhaps you started saving for retirement late in the game, but now’s the time to get yourself caught up.

More on Retirement Planning »

 

In Your 50's

Do

Don't

Teach your kids financial independence
Whether you have your children start paying for their own insurance, car payments or cell phone bills, setting up their personal responsibility and accountability now will set them up for success. Encouraging their financial independence and teaching them money management skills not only frees up your wallet, it will help them remain financially healthy throughout their lives.

Don't dip into your savings
In your 50’s, life changes and big expenses like college tuition for your kids and medical expenses for aging parents might increase financial pressures. You may also be looking ahead to retirement and wondering if you’ll ever get there. It may be tempting to ease your financial stress by taking out your savings, but big penalties can be involved. Talk with your Morey & Quinn Financial Advisor about other means to deal with pain points before dipping into the savings you’ve worked so hard to build.

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Think realistically about future health needs
Most put off thinking about their long-term health care needs and the major medical expenses they might incur. Plan now for the reality of your retirement, especially the health care needs for your 70’s, 80’s and beyond. For example, todays skilled nursing care can cost over $6,000 per month, so plan ahead. Talk to your Financial Advisor about long-term care planning and the right types of accounts that can help you reach your goals.
Don’t draw on your retirement accounts
It’s always wise to keep your money in a 401K or IRA account until you can draw on it without penalties. Talk with your financial advisor about when is the best time to move it. Morey & Quinn Wealth Partners can guide you on other types of investment and savings accounts that will have the maximum benefit for your circumstances, without the high age penalties.
  Don’t carry old debt to retirement
Focus on clearing out all debt other than your mortgage to pay it all down before retiring. Your mortgage can be tackled later, but by getting rid of outstanding debts first, you’ll feel a lot less pressure when you’re ready to retire.

At every age, Morey & Quinn personalized financial planning services are designed to enhance your financial outlook and help you reach toward your goals.

Whether you’re a woman investor finding your independence, an executive who’s about to retire, or a young professional just starting out, Morey & Quinn delivers a uniquely personal financial plan and personal counsel, no matter what stage you’re at in life. As you encounter life’s changing circumstances, whether it’s having a child, buying a home, sending kids to college or approaching retirement, take confidence in Morey & Quinn Wealth Partners’ expert wealth management services and ongoing guidance.

Schedule a wealth-planning consultation tailored to you.

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