Financial Planning in Your 30s - Adviser Investments

Financial Planning in Your 30s

October 4, 2019

Say goodbye to canned tuna and ramen and hello to gray hair: As you enter your 30s, your near-term responsibilities and long-term obligations expand. Starting a family, contemplating homeownership and earning enough money to consider investing it all come with the territory.

Here are five tips to those in their 30s to get started on the path to securing their financial future.

  1. Don’t Forget the Fundamentals. The same financial planning basics from your 20s apply:
  1. Protect Your Assets. As your earnings and assets grow, protecting them becomes more important—and that means making sure you have adequate insurance. Disability insurance can help protect your salary if you are unable to work. And life insurance can help provide for your loved ones’ future if you pass away. For further guidance on figuring out how much insurance you should have, please read our previous piece on life insurance and listen to our podcast episode on insurance needs. 
  1. Manage Your Debt. Whether you’re buying a home or buried in student loans, getting debt under control is a crucial component of the budget for most 30-somethings. One rule of thumb we like is the “36-28-20” rule. The rule suggests keeping total debt below 36% of your total gross income, housing expenses (mortgage/rent/taxes/insurance) below 28% of your gross income and credit card debt and other loans below 20% of net income. (This can be more difficult if you live in a city.) 
  1. Plan for the Worst. If you were in an accident, who would take responsibility for making your health care and financial decisions? How would your car loan and mortgage be paid? If you have children, who would take care of them and would they have sufficient funds to do so? A proper estate plan will provide answers to these questions. Some resources you might want to consider include our Estate Planning Checklist as well as our report and podcast episode on how to find the right estate attorney. 
  1. Keep Dreaming Big. Your 30s are often a time of taking on increasing responsibilities (and the tips above should help you manage them). But they’re also a time to work toward your dreams. Whether it’s owning your own business, sending your kids to college or retiring to a beach in Bali, this is the time to call in an experienced financial planner to customize a road map to help you achieve your lifelong goals.

These five tips are applicable to anyone in their 30s. But it’s also important to recognize that everyone’s situation is unique—that’s why we offer detailed financial plans to our clients at no extra cost. If you would like our help to make sure you or a loved one have checked the right boxes for a financial plan, please contact your portfolio team. We’ve got your back.

Disclaimer: This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Our statements and opinions are subject to change at any time, without notice and should be considered only as part of a diversified portfolio. Mutual funds and exchange-traded funds mentioned herein are not necessarily held in client portfolios. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.

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