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What Your Age Means
To Your Money
by Linda Descano, CFA®
(NAPSI)—Age is more than just a number when it comes to financial
planning. Starting early can help provide a leg up on a comfortable
retirement and keep you prepared for life’s curve balls. This is
particularly important for women, who live longer than men, are more
likely to require long-term care services and take more time out from
work to care for a loved one. Because of these financial realities,
women need to start saving early, save more as they earn more and plan
carefully. Here are a few smart moves:
In Your 20s
• Focus on living on a budget and making savings automatic. Set
financial goals and identify what it will take to achieve them.
Consider setting up an automatic transfer from your primary bank
account to a dedicated savings account each month. Also, don’t miss an
opportunity to enroll in your employer’s retirement plan, such as a
401(k) plan, and take advantage of matching contributions.
In Your 30s
• Set up an emergency fund to cover at least six months of living
expenses. Identify a financial professional to help you put a
comprehensive financial plan in motion.
In Your 40s
• Help protect yourself and your family financially through appropriate
insurance and estate- planning vehicles, including a will, power of
attorney, living will and health care proxy. Consider maximizing
retirement contributions, with your earnings likely at their peak.
In Your 50s
• Create a long-term care strategy and catch up on retirement savings.
At age 50, you become eligible to make “catch-up” or extra
contributions to your IRA, 401(k) or similar retirement plan.
In Your 60s
• Know your Social Security benefit options. At age 62, you’re eligible
to start receiving Social Security, but your benefits could be reduced
by as much as 30 percent if you opt to get Social Security before your
full retirement age. Manage your expenses and have a plan for how to
draw down your savings. Update your estate plans.
Starting a financial plan is smart, but it’s only a first step.
Remember to regularly review your financial plan to make adjustments as
life transitions occur. For more information, go to Women & Co. at
www.womenandco.com.
Linda Descano, CFA®, is president and CEO of Women & Co., a
financial resource and community for women backed by Citibank.
Previously a director and portfolio manager in Citi’s Private Portfolio
Group, she was the recipient of the 2011 WomenSphere and Urban Zen
Foundation Luminary Award and 2009 Corporate w2wlink Ascendancy Award
for her career achievements and her dedication to mentoring women.
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