Save for Your Future by Investing for Life’s Milestones

Young couple holds baby they set up 529 college plan for to invest in their child’s education

No matter what your plans are for your life, you don’t want money to get in the way of achieving your goals. 

As such, you may want to consider investing your money during each stage of your life to make your aspirations are more attainable — — and if you need help along the way, Minster Bank’s financial advisors can assist with any questions.

Keep reading to consider investing options for each of these four of life’s milestones.

Life Milestone Example No. 1: Going to School

Saving money for your education can be difficult, especially if you intend to continue your schooling right after high school.

Young college student sets up 529 college investment plan on tablet during life milestone of going to school

However, Kevin Voigt, a staff writer at NerdWallet, recommends that in addition to setting aside spare cash for your post-secondary education, you should set up a 529 college savings plan. 

While 529 plans are typically set up by parents, you can start one yourself to further your schooling later on in life. You can also ask your friends and family members to give you cash instead of gifts for your birthday or other special occasions so you can put that money toward your 529 fund.

Life Milestone Example No. 2: Starting a Job

Young woman shakes hand with new employer during life milestone of starting a job

Once you have your first job out of school, you may want to invest in a 401(k) plan to save money for your retirement

According to Carol M. Kopp, a contributor to Investopedia, many employers will match your investment in a 401(k) plan, so you should at least pay the minimum amount that makes you eligible for a full employer match. 

Kopp also advises diversifying your investments by selecting different bonds and stocks to protect against a potential downturn. 

If you are self-employed as an independent contractor or sole proprietor, Ana Maria Martinetti-Katz, a contributor to Investopedia, says you can select a solo 401(k) instead.

Life Milestone Example No. 3: Getting Married

If you decide to get married, your investment plan then becomes something to discuss with your partner. man and woman exchange rings during life milestone of getting married

Rebecca Lake, the Financial Planning expert for The Balance, recommends having open communication and shared goals for your investments in stocks, bonds and mutual funds. If one spouse is not working, they can also invest in a spousal IRA so they can save for retirement. 

According to Martinetti-Katz, as long as the working spouse’s compensation is taxable, the nonworking spouse can contribute up to $6,000, while those over 50 years old can contribute up to $7,000.

Life Milestone Example No. 4: Having Kids

You may find that your expenses greatly increase if you have children, and that your income decreases if you or your spouse leaves work to care for the children.

Mother and father hold baby during life milestone of having kids

Therefore, if you have kids, you may need to adjust your financial plans and add to your emergency fund. Lake also suggests setting up a 529 plan for your children as soon as possible.

As Voigt says, even if you need to start small, investing in your children’s education from birth can be helpful later on. Once they’re older, your children can start applying for scholarships and the FAFSA to assist with college tuition.

 

Turn to a Financial Advisor For Help

Investing throughout your life can make it easier to turn your future aspirations into reality. 

Before you start planning for your next milestone in life, be sure to speak with a Minster Bank financial advisor about which investments are right for you.  

>> Contact an Advisor <<

 

Published by Minster Bank

Includes copyrighted material of IMakeNews, Inc. and its suppliers

Securities and Investment Products offered through the Minster Bank Private Wealth Management Group: * Not FDIC insured * May lose value * Not financial institution guaranteed * Not a deposit * Not insured by any federal government agency.