Retirement planning is kind of the same thing. We should be doing it no matter how old we are—just with a different strategy.
With this in mind, we asked a financial planner Jennifer Hartman in the oh-so-fashionable city of Los Angeles to write the “Dos” and “Don’ts” for retirement planning at every age.
Below she offers her advice and also explains how wearing leggings is like planning for retirement (well, sort of):
During Your Twenties
What’s Out—Only paying the minimum monthly amount required by your student loan. Some loans are a sucker’s bet. These loans allow you to pay less than the interest charged on the loan, which may seem like a free ride. In fact, by electing this option, you will soon find your loan balance has grown beyond your initial balance. Credit card companies have used this trick for a long time and other lenders are following suit. Beat them at their own game by determining how much you can afford above the minimum every month and sticking to it.
What’s In—Planning your financial future today. Life is full of uncertainties and everyone’s plans eventually need adjustments, but if you start writing down the steps to achieve your goals now, you will have a better chance of accomplishing them—and maybe even surpassing them! Smart twenty-somethings may even consider professional advice from a fee-only financial planner to help make investment decisions in their employer’s retirement plans or tackling other financial needs.
During Your Thirties
What’s Out—Opening a credit card for every store that offers you a one-day, 10 percent discount. Not only are those long-forgotten purchases an unpleasant jolt when you receive the bill, but the credit checks from these card applications will lower your credit score. When you take out that first mortgage, you’ll thank me! Furthermore, retail lenders have notoriously high interest rates. If the purchase is that important, better to use cash or a debit card.
PREVIOUS PAGE
