Become Familiar with These Five Key Areas
As an investor, your objectives typically will fall into five key areas. Let’s take a look at them:
1) Preparing for retirement – Save as much as possible for your retirement. Take full advantage of your 401(k) and your IRA.
2) Planning for the unexpected – Build a six-to 12 month emergency fund to pay for unexpected costs, such as a new furnace or a major car repair. And make sure you have sufficient life insurance.
3) Educating your children – Consider a college-savings vehicle, such as a 529 plan.
4) Living in retirement – You’ll need to create a withdrawal strategy so that you don’t outlive your income.
5) Transferring your wealth – To leave the type of legacy you want, you’ll need to create an estate plan with the help of your financial and legal advisors.
So, there you have them: five key financial areas on which to focus as you travel through life.