HUNTSVILLE, Ala. (WAFF) – When it comes to money matters, those in their 30s might not be focused on the same things people in their 50s are thinking about. Take it from Certified Financial Planner, Marshall Clay with The Welch Group.
Clay said the stage of your life dictates your saving and spending habits.
“I think as you evolve in your thirties you’re really moving from that foundational positioning that hopefully you’ve built in your twenties and now you’re starting to develop more in your career,” Clay said. “This is not the path for everybody. Everybody’s timelines [are] a little bit different.”
The wealth management expert said it’s likely those in their 30s are moving away from that formal education, perhaps married with children or in the right career field, making their way up the corporate ladder.
Clay said those in their 30s might also be looking at buying a home.
“So you’re really starting to kind of grow in your life,” said Clay. “So I think it’s important for people in their thirties to really start thinking about their long-term financial positioning.”
It goes beyond planning for the future.
The financial expert says it’s about managing risks down the road such as buying life or disability insurance, executing a will, power of attorney and a health care directive so all family members are on the same page should you end up needing care.
Even though retirement is decades away, Clay says it’s a good idea to start thinking of retirement plans, and specifically, what your retirement age is going to be.
“And really start doing some very detailed backward planning,” Clay said. “And so it’s going in and saying, ‘well look, how much money do I want to spend on an annual basis in retirement?’”
Avoiding bad debt from credit cards or big-ticket items is key, and the financial guru said it’s equally important to save in earnest and take advantage of your 401(k).
For more ways to stay financially savvy, visit The Welch…
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