Life Cycle Stages

• Early Career - Ages 25 to 35
In the early career stage, one is starting to build a foundation for a strong financial future. Now is the time to establish good habits of saving and investing. Focusing on long term growth in your assets faster than inflation is vital. Planning to start a family, saving to purchase a home and paying down college debt are common challenges. At this stage keeping income in step with expenses can be a struggle, but it is important to lay the groundwork for retirement saving now.

• Career Development - Ages 35 to 50
Earnings rise, but so do financial demands. Your financial life becomes more complex as you balance kids, mortgages, career moves and funding retirement. Your own college loans may be paid off, but now you face paying for your children’s education. Properly managing debt in this stage can play a big role in securing your retirement.

• Peak Accumulation - Early 50s into the early 60s
In this stage one typically reaches their maximum income level. The life expenses of earlier stages may be abating, providing an opportunity to clean your balance sheet, with the goal of entering retirement with as little debt as possible. Low debt creates greater financial flexibility and security. This may also be a time to catch up in your savings for retirement. Maintaining broad diversification in taxable and tax deferred portfolios builds a stable foundation for retirement.

• Retirement - Mid-60s and beyond
Retirement is now within view, but what form will it take? Do you flat out retire, ease out or begin your second act? Is a new career or vocation calling? Checking off that bucket list, moving to a warmer climate or relocating closer to grandchildren may become of interest. Your investment focus is about to shift from wealth accumulation to distribution, but don’t become too conservative with your portfolio. Decades of life expectancy will require decades of asset growth above inflation. When is the optimal time to collect social security and how do you manage your different streams of income throughout retirement? Managing market risk, especially early in retirement, can help you control longevity risk – the risk of running out of money that we all face.