Bronze medal — endurance training for your financial future
To prepare for financial success, you must train. This is as true for your financial health as it is for any athletic endeavor. Begin by defining your goals and strategizing with your financial advisor to create a game plan consistent with those objectives. Consider the opportunities available to you—tax-advantaged vehicles like 401(k)s, for example, or maximizing your contributions to an employee-sponsored retirement plan. Steps like these can help set you up for success in the long term.
Silver medal — approaches for retirement
You’re in the thick of it now and hopefully your earlier investments are paying off. But there’s still more to do! Align your investments with your goals and continue to assess and rebalance to stay on track and offset the impact of inflation. It could be a good time to talk with your financial advisor about a Roth conversion or other tax considerate strategies. At this stage, it may also be a good time to evaluate your long-term care coverage and think deeply about what you may need in the future to help meet your needs— as well as the needs of your loved ones. You might also revisit estate planning documents, beneficiary designations and more.
Gold medal — thriving beyond the medal ceremony
You made it! You’re on the podium wearing a medal on your neck but it’s not over. This is when you want to relish your accomplishments and enjoy the sense of accomplishment. You may also want to reduce your complexity so you can enjoy life more. Consider consolidating your accounts to simplify your financial life and make managing your finances an easier task. You may also want to conceptualize your finances in terms of the bucket strategy—placing assets in your portfolio into categories of near-, intermediate- and long-term needs. This is also a great time to understand gift and estate tax thresholds and take advantage of wealth transfer exclusions and deductions. While you’re still feeling like a champion, take time to consider your end game.
Connect with your financial advisor to help get your legacy and wealth transfer plans in writing and share them out with your loved ones.