Act Your Financial Age

first_imgBaby Boomers (Born 1946-1964, Age 55-73 in 2019)Determine when to claim Social Security and develop a strategy to provide income from investmentsLearn about Social Security, Medicare, and pension benefits as you approach the age of eligibilityInvestigate later life housing and living costsLearn about required minimum distributions (RMDs) from tax-deferred retirement savings plansTry to pay off all debt before retirementTake advantage of available “senior discounts” Young woman By Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, boneill@njaes.rutgers.eduPFMP staff serve service members and their families at all ages and stages of life from young enlisted personnel getting a credit card in their 20s to those receiving retirement pay decades later. Thus, it is essential to understand how different generations handle money. Below are some examples of generational differences:Millennials spend the most of any generation on eating out and Generation X spends the most on housingMillennials are more likely than other generations to not carry around any cashCredit card use and credit scores increase with age as do health insurance premiumsYounger tax filers are more likely to use software and older tax filers more likely to hire a tax professionalEach decade of one’s financial life has suggested recommendations. Below are action steps for the four generations that are currently in the workforce or retired. Positive action steps taken as a young adult should continue throughout one’s adult life. A military homecoming. Portrait of an African American woman wearing navy camouflage uniform standing outdoors with her family. Her husband is holding their 5 year old son who is in the middle between his parents. Return to article. Long DescriptionGet strategic about philanthropy and/or gifting to family membersTalk to children/heirs about finances and estate planningStreamline and consolidate financial accounts and downsize and/or donate excess “stuff”Take RMD withdrawals from tax-deferred retirement savings plans (e.g., 401(k)s and Traditional IRAs)Make sure family members and/or advisors know where to find personal and financial documentsAdjust lifestyle to declining real income, if neededFor additional information about financial tasks for different generations, review the Military Families Learning Network webinar Financial Planning Transitions for Different Generations. Return to article. Long DescriptionGeneration X (Born 1965-1981, Age 38-54 in 2019)Continue to invest for the long term in stocks or stock mutual fundsDiversify investments and periodically rebalance portfolioEnhance employment skills (build human capital)Try to “max out” retirement savings plan contributions; take advantage of catch-up contributions at age 50+Talk to aging parents about their financesPrepare a will and living will if one wasn’t already created Mature/Silent/Traditionalist Generation (Born 1927-1945; age 74-92 in 2019) Return to article. Long DescriptionPhotospin/Ruslan KudrinMillennials or Generation Y (Born 1982-2000; Age 19-37 in 2019)Train for a career and become financially independent from parentsLearn to budget and “pay yourself first”Develop a repayment strategy for student loansBuild an adequate emergency fund (i.e., 3 to 6 months expenses)Build a positive credit historyDevelop investing expertise and start investing for retirementBuy life insurance to protect dependents and/or student loan co-signersBalance YOLO (You Only Live Once) and FOMO (Fear of Missing Out) mindsets with financial security Return to article. Long Description https://pixabay.com/photos/adult-elderly-face-man-old-person-1852908/ https://pixabay.com/photos/portrait-lady-glasses-woman-face-2827173/last_img

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