Your 20s — Build the Foundation
- ✅ Create a budget and track spending
- ✅ Build emergency fund ($1,000 starter, then 3 months expenses)
- ✅ Start contributing to 401(k) — at least get the employer match
- ✅ Open a Roth IRA and start investing (even $50/month)
- ✅ Build credit with one credit card (pay in full monthly)
- ✅ Get renter insurance ($15-$30/month)
- ✅ Pay off high-interest debt aggressively
- ✅ Start learning about personal finance (read one book)
Your 30s — Accelerate Growth
- ✅ Increase retirement savings to 15% of income
- ✅ Max out Roth IRA ($7,000/year)
- ✅ Get term life insurance if you have dependents (10-12x income)
- ✅ Get adequate health insurance (do not rely only on employer)
- ✅ Build emergency fund to 6 months expenses
- ✅ Start saving for home down payment (if buying)
- ✅ Create or update your will and beneficiary designations
- ✅ Start 529 plan if you have children
- ✅ Eliminate all consumer debt
Your 40s — Optimize and Protect
- ✅ Max out 401(k) ($23,000/year)
- ✅ Review and increase life insurance coverage
- ✅ Get disability insurance if not provided by employer
- ✅ Consider umbrella insurance ($1M for $150-$300/year)
- ✅ Pay off mortgage early or refinance if rates dropped
- ✅ Increase college savings for children
- ✅ Review estate plan (will, power of attorney, healthcare directive)
- ✅ Start thinking about long-term care insurance
Your 50s and 60s — Protect and Prepare
- ✅ Take advantage of catch-up contributions (extra $7,500 in 401k, $1,000 in IRA)
- ✅ Max out HSA if eligible ($4,150 individual / $8,300 family)
- ✅ Eliminate ALL debt before retirement
- ✅ Calculate retirement readiness (do you have 25x annual expenses?)
- ✅ Develop Social Security claiming strategy
- ✅ Plan healthcare between retirement and Medicare (age 65)
- ✅ Finalize estate plan — will, trusts, power of attorney, beneficiaries
- ✅ Create retirement income plan (which accounts to draw from and when)
- ✅ Consider downsizing to reduce expenses and free up equity
- ✅ Plan for purpose and fulfillment — retirement is not just financial