Planning in your 30s
It’s time to get serious
While your 20s may have been spent getting to know your worth out on the job market, making some spending mistakes and possibly not putting saving for retirement on top of your priority list, your 30s are the time to be completely and absolutely serious about your financial future.
More likely than not, you’ll have to consider the financial needs of your spouse and/or children, which means your financial responsibilities and expenses are likely to increase as well. Don’t be thrown off track by short-term moves in the market and don’t get distracted by the headlines. Stay on course towards your personal goals. Remember that a disciplined long-term investment approach is still the best way to go. In addition to that general advice, here are some methods for addressing the challenges and coming out ahead:
- Get rid of it: Eliminate non-mortgage debt. Nothing frees up cash for your growing family responsibilities like paying off high-interest loans. If you didn’t take care of credit card debt in your 20s, now is the time to do it. Student loans and car loans come next.
- Be a number cruncher: It’s time to sit down and do the math. Figure out how much you need to retire and start saving for the investment plans you’ll want.
- Put yourself first: Don’t save for your kids’ college tuition before saving for retirement. It may be far easier to take a loan out for college.
- Spread the wealth: Diversify and protect your portfolio. You’ll need to weather both the ups and the downs securely.
- Ask the hard questions: Plan for the “what ifs” by insuring what you have. Homeowners insurance, health insurance*, disability insurance* and life insurance: they’re all crucial.
30s guidance from the professionals at New York Life
Irma Perez, Agent, New York Life Santa Clara General Office: “If you’re in your 30s and need death benefit protection, look into permanent life insurance now and learn about all the features and benefits like guaranteed death benefit2, guaranteed cash value accumulation, tax deferred cash value growth and generally tax free access to cash value via policy loans3.”
Joel Steele, New York Life Agent, South Jersey General Office: “Think about retirement planning. Then start saving for it in your 30s. Like many of your generation, you may not have a pension or any other benefit so you need to be more proactive with your personal retirement strategy.”
Rakesh Bansal, New York Life Agent, Princeton General Office: “People always ask, ‘how much insurance do I have to buy at this stage of my life?’. The simple answer is you need to make sure the insurance you have can fully replace your current earned income.”
* Products available through one or more carriers not affiliated with New York Life Insurance Company, dependent on carrier authorization and product availability in your state or locality.
2All guarantees are based upon the claims-paying ability of the issuing company.
3Policy loans accrue interest and reduce cash value and death benefit.