SEFCU Wealth Management Services Presents: Beyond Retirement - What About Your Other Goals?

SEFCU Wealth Management Services Logo

In addition to saving for retirement, there may be several other major financial goals you'll need to juggle in your lifetime.

Let's say that at the age of 25, you earned $35,000. If your salary increased at the average historical rate, you'd have earned nearly $2 million by the time you were 65.1,2 That might sound like a lot – until you begin thinking about all the financial goals you'll need to juggle in a lifetime, including buying a home and paying for your child's education, while funding your own retirement. If managed wisely, your money could potentially go a long way. Here are some tips to help you get started. 

Get a Jump on All Your Goals
You've heard about the value of starting early on retirement savings, even if you can only invest a little each month. The same goes for college savings and other goals. Even a $100 a month investment for college could potentially leave you with about $16,470 in 10 years, assuming an average annual return of 6% – a good start that you can build on as your income grows.1

Set Aside a Slice of Pay Hikes
As your income rises over the course of your career, it's easy to slip into a pattern of "living up" to your means; that is, spending that extra pay you didn't have before on daily living expenses. Instead, consider setting a quota for yourself: Earmark a predetermined portion of every pay hike for your savings goals. You may want to apply the same rule to other windfalls, like an unexpected bonus or tax return.

Use the Right Tools for the Job
Just as your employer-sponsored retirement plan offers a tax-advantaged opportunity to set aside money for your later years, certain vehicles, such as 529 college savings plans, provide potentially attractive tax breaks for college savers. Minimizing the taxes you have to pay up front on investments and earnings gives you the chance to make the most of compounding over time.
Finally, whatever your particular financial goals may be, keep in mind that minimizing debt is a timeless, indispensable strategy for establishing personal financial balance.
 

To understand more about your retirement planning options, contact SEFCU Wealth Management Services at [email protected] or call 518-451-2948.

Check the background of investment professionals associated with this site on FINRA's BrokerCheck.


1Hypothetical example is for illustrative purposes only. Does not represent the return of any actual investment.
2Assumes inflation-adjusted 1.5% annual wage hikes, as reported by the Bureau of Labor Statistics.

Because of the possibility of human or mechanical error by DST Systems, Inc. or its sources, neither DST Systems, Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall DST Systems, Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content.

© 2018 DST Systems, Inc. Reproduction in whole or in part prohibited, except by permission. All rights reserved. Not responsible for any errors or omissions.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. SEFCU and SEFCU Wealth Management Services ARE NOT registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using SEFCU Wealth Management Services, and may also be employees of SEFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, SEFCU or SEFCU Wealth Management Services. Securities and insurance offered through LPL or its affiliates are: 

The LPL Financial representatives associated with this Website may discuss and/or transact securities business only with residents of the following states: CA, CT, FL, MA, ME, NC, NJ, NY, PA, UT, VA, VT, and WI.