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Investment Accounts to consider By Age

1-10: Getting Started

529 college and UTMA account

So boom youve just been born between the recent shortage in formula and rising inflation you’ve already got alot to consider you’re probably crying all the time because youre overwhelmed about the future I know. But you have savvy parents who not only bought a surplus of formula at a discount for your body they also started you off with a few investment accounts to make sure as your grow your money grows too.

10-20: Peaking interest

Custodian taxable brokerage account

Your in HS If you decide you want to go to college at this point your parents have been funding your 529 college account for the past FIFTEEN years taking advantage of the compound interest and tax free growth. If you decided College isn’t for you they can roll the fund from your 529 into your little brothers account. But youre not just left out in the cold in addition to a 529 college plan your parents opened a UTMA account and those fund have also taken advantage of the beauty of compound interest and are available to you for whatever passion project or life desire you have. Thanks Mom and Dad! At this point in your life as you discover your autonomy you want to take a more proactive stance In your knowledge of investing. Your parents happy to see you enthusiastic open you a custodian account in your name. Technically your parents still have control of the account but when you reach a certain age that account will be turned over to you and these days a lot of parents are letting their children dictate the investment in their custodian account in order to give them a first look into investing.

20-30: Adulting 101

401K, tax advantage CMA, IRA or ROTH

You’re an adult or what society considers an adult. Finally the first time you can open accounts on your owns and decide to really take the reign of your own financial future. Might ask yourself where do I begin. Well if your parents started that custodian account your already ahead of the 60% of Americans without any type of investment account. But If youre getting started you’re still in luck setting up an investing account take less than 10 minutes. The first place you should start if youre brand new is your place of employment. See if they offer some type of 401k or 403B plan. These retirement investment account deduct money directly from your paycheck pre tax and invest them on your behalf growing tax differed with compound interest until retirement. At retirement age you will have to pay the tax on your withdrawals but the idea is since your retired your income level will be lower and therefore youre tax bracket will be lower and you’ll pay less. If your company has a matching program that’s even better. With a 401k match the company will literally match your contribution up to a certain percentage. If traditional employment isn’t your thing there are still investment accounts that you can set up on your own to prepare for retirement or just invest in general. The Traditional IRA or Roth IRA are both vehicles in order to achieve your retirement goals. .There are also taxable cash managed account (CMA) that will allow you purchase and hold securities (stocks bonds etc).

30-40: Serious adulting

Health Savings Account (HSA) Life Insurance

Your 30s if you’ve been prepared with the accounts mentioned previously should be about setting yourself up for the remained of your life. The number one cause of bankruptcy in America is due to medical expenses in addition the Average life span is 72 so your 30 to 40s should be about making sure youre set up in regards to getting older. average couple 65

and older in 2019 will need around $285,000 in AFTER TAX dollars to

pay for medical bills in their life. A Health savings account or HSA allows you to put money in an investable account where profits can be used for any type of medical expense. A lot of employers have HSA as part of there benefits package but if they don’t you can always open one at any popular brokerage. Also while it’s not an investment account per se but if you haven’t already your 30s is the perfect time to get life insurance while you’re still relatively young and the premiums are low. If you have children life insurance is a must as far as I’m concerned don’t leave your children in a worse off position behind something that will eventually happen to everyone.

50/60 preserving the wealth

HYSA …CD’s …REIT ….Bonds

You done it you managed to make it to retirement age at this point in the wealth journey your major concern should be about preserving the wealth you have accumulated throughout your life so far. Nothing is worse than to put what you’ve been using compound interest for your entire life into risky investments at an age where you’re supposed to make your money work for you and enjoy life. To that end There are several investment vehicles that will guarantee a modest return with very little effort on your part. A high-yield savings account or HYSA. Certificates of Deposit, Real Estate investment trust, Bonds, Equity investment in stable value companies that pay a good and consistent dividend.

60-70 passing the wealth to the next generation

Living Wills, Last Will and Testament, Trust, Charities and foundations

if your 50s are about preserving your wealth your 60 should be about preparing to successfully transfer what you’ve accumulated onto the next generation. At this point in life probably already purchased your house have your retirement fund set up and working in your favor if you haven’t already you might want to consider the impact that you’re having on your family and next generation.What do you want your legacy to be? the first step is to make sure your accounts have designated beneficiaries. This allows the funds to transfer to your next of kin quickly without having to go through probate which is the court process of settling affairs. Like most court proceedings this process usually requires you to pay for a lawyer. if you have significant assets there are many vehicles such as trust and charitable foundations that allow you even while still living to control and direct your assets in a manner that best avoids the fees and taxes that come along with estate planning. ill be doing a future blog post about some of the more popular ones being use in the world today.

If you have any question or would like to begin the process of achieving financial freedom please dont hesitate to contact me to set up a free overview. You can reach me directly at

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