The Middle Years

There are many demands on your finances as you start to build a career, family and life for yourself. Women don’t often think about making plans to save for themselves, as they typically get caught up in life and caring for their career, families and others. While so much emphasis is paid to saving for retirement, there is still a lot of life to live between now and then. Here are some key considerations as you begin to think about those middle years:

• Goal setting- Defining your short, mid and long-term goals is an important first step. This will help guide you as you make investment decisions. For example, investing for a long-term goal might mean you are willing to take more risk, whereas a short-term goal might mean you would want to be more conservative since you will need the money sooner. Long term goals provide an advantage in that you can ride through market fluctuations knowing you have time.
  
  
• Protecting your income- No matter what stage of life you are in, chances are you need some type of protection in the form of insurance to protect yourself and the assets you’ve worked hard to accumulate. Disability insurance can provide you an income if you are unable to perform your job due to an accident or illness. Life insurance helps to ensure that your family can maintain their current lifestyle in the event of death. It can even help fund longer range needs like college tuition and retirement.
  
  
• Homeownership- For many, the American dream still means owning a home. Whether you’re buying for the first time, refinancing, or beginning home improvements, you need to understand the complex issues involved. Being prepared and understanding the process can help make it a little bit easier.
  
  
• College Cost- According to the College Board and Department of Labor, the costs for higher education is rising. Will you be able to help your children through college without jeopardizing your lifestyle or postponing your retirement plans? What if you want to pursue an advanced degree for yourself? How can you do this, while also saving for your future? If college costs continue to increase at the current rate, the amount you and your family will have to pay over time is staggering. But as with any financial plan, the earlier you start the easier it will be.
  
  
• Investing- Knowing your risk tolerance is an important first step. A high-risk tolerance means you are willing to ride out fluctuations in the value of your investments in order to potentially achieve higher long-term returns. A lower risk tolerance means you need to see regular and steady growth.
  
  
• Saving for Retirement- The retirement of your dreams starts with a plan. Many people have an idea of what they want their retirement to be. Whether it’s traveling around the world, spending more time with grandkids, volunteering or starting another career. But, to make it a reality, you need a solid plan. The smartest move towards a comfortable retirement is getting started now, while there’s time to maximize your savings and earnings potential.