Financial Planning Month Part 2: Accelerate Retirement & Secure Your Family’s Financial Future
Last week, we laid the foundation for your financial security in this article. This week, we’re focusing on growing your wealth through smart investing and completing your financial wellness planning by educating the next generation.
Accelerate Your Retirement and Investment Strategy
October reminds us that the earlier you start investing and the more consistent you are, the more compound interest can work its magic. A 25-year-old who saves just $200 per month with a 7% annual return will have over $525,000 by the time they reach age 65. Wait until 35 to start, and that number drops to about $245,000, less than half. Even small, consistent contributions make a meaningful difference, and there are catch-up opportunities for those age 50 and older.
- Maximize Your Employee Benefits: If your employer offers a 401(k) match, prioritize maximizing it first; it’s literally free money. Then consider boosting your contribution percentage. Even increasing by 1% can significantly impact your long-term wealth.
- Tax-Advantaged Savings: Individual Retirement Accounts (IRAs) offer additional tax-advantaged savings opportunities. Traditional IRAs may provide current tax deductions, while Roth IRAs offer tax-free growth and withdrawals in retirement.
- Professional Wealth Management: Rather than navigating complex investment decisions alone, you gain access to personalized strategies tailored to your risk tolerance, timeline, and financial goals. Professional portfolio management from Achieva Wealth Advisors helps optimize your investments while you focus on your career and family. They also provide retirement and legacy planning, small business benefits planning, and more.
Complete Your Legacy with Financial Education
There’s one more crucial element to your complete financial wellness plan, which is passing on valuable money skills to your kids. Children who learn about money management early are more likely to become financially responsible adults.
Here are some age-related conversations that you can have with kids:
- Ages 5-10: Focus on saving versus spending, needs versus wants, and the value of money.
- Ages 11-14: Introduce budgeting concepts, compound interest, and basic banking. This is perfect timing for their first savings account.
- Ages 15-18: Discuss what credit vs debit is, loans and loan rates, investment basics, and college financing.
Teach your children to handle their own future wealth. This is accomplished through both hands-on tools and consistent family habits. Getting them their own account gives real-world accountability to manage their own money.
Achieva’s Kids Makes Cents Savings account is a dividend-bearing savings account (opened jointly with a parent or legal guardian) that serves as a fantastic stepping stone for kids to begin saving and managing money independently. Learn more in this article.
Beyond specific accounts, use the rest of October to establish ongoing family money traditions. This could include having weekly “money talks” during dinner, setting family savings goals for vacations or major purchases, involving older kids in price comparisons when shopping, and teaching them how to research major purchases before buying.
Achieva Credit Union is your Complete Financial Wellness Partner
National Financial Planning Month reminds us that true financial wellness isn’t about perfecting just one area; it’s about creating a comprehensive life strategy.
What makes Achieva Credit Union different from other financial institutions is having one trusted partner for your entire financial journey: emergency savings, debt management, retirement and wealth planning, insurance protection, and financial education for your children.
Your future self will thank you in the months in years to come by taking these steps now.
